Economics MCQs

Page No. 244

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?


a fluctuate more than it would do otherwise

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bappreciate

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cdepreciate

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dnot be affected

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View Answer depreciate

If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?


a fluctuate more than it would do otherwise

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bappreciate

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cdepreciate

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d not be affected

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View Answer depreciate

If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?


adepreciate

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b not be affected

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c fluctuate more than if it were at peace

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dappreciate

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View Answer depreciate

If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?


awill remain the same

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b will decrease

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cwill increase

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dcould either increase of decrease

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View Answer will increase

The situation when a country imports more than it exports is ?


aa recession

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b a trade surplus

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ca trade deficit

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dan expansion.

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View Answer a trade deficit

The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its ?


afinancial account on the balance of payments.

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bbalance of payments

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cbalance of payments on current account

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dcapital account of the balance of payments

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The record of country’s imports and exports of goods and services is called its ?


avisible trade balance

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b balance of trade

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cbalance of payments on current account

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dbalance of payments.

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View Answer balance of trade

An economy that trades with and has financial dealing with other countries is called a/an ________ economy?


afree-trade

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bautarkic

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copen

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dmixed

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View Answer open

If interest rates rise then costs are likely to _______ and demand is likely to _________?


arise, fall

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b rise; rise

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c fall; fall

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dfall; rise

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View Answer rise, fall

Government policies that focus on changing taxes and government spending are called ?


afiscal policies

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bincomes policies

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csupply-side policies

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d monetary policies

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View Answer fiscal policies

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