Economics Mcqs
Which of the following is macroeconomic issue ?

A. The price of houses in karachi
B. The wage rate for plumbers in islamabad
C. Your decision to work or stay at home
D. The level of unemployment is pakistan

Which of the following is not involved with fiscal policy ?

A. Income tax
B. National insurance
C. Vat
D. Interest insurance

Which of the following is not a macroeconomic issue ?

A. Unemployment
B. Inflation
C. The wages paid to footballers
D. Economic growth

Which of the following is a policy instrument as opposed to a government objective ?

A. Lower interest rates
B. A better balance of trade position
C. Faster economic growth
D. Lower unemployment

Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?

A. The aggregate supply curve shifts to the right by more than rs 16 billion
B. The aggregate demand curve shifts to the left by more than rs 16 billion
C. The aggregate demand curve shifts to the right by more than rs 16 billion
D. The aggregate supply curve shifts to the left by more than rs 16 billion

Which of the following is an automatic stabilizer ?

A. spending on public schools
B. military spending
C. all of these answers are automatic stabilizers
D. spending on the space shuttle

The initial effect of an increase in the money supply is to ?

A. Increase the interest rate
B. Increase the price level
C. Decrease the price level
D. Decrease the interest rate

The initial impact of an increase in government spending is to shift ?

A. Aggregate demand to the right
B. Aggregate demand to the left
C. Aggregate supply to the right
D. Aggregate supply to the left

An increase in the marginal propensity to consumer (MPC) ?

A. Raises the value of the multiplier
B. Has no impact on the value of the multiplier?
C. Rarely occurs because the mpc is set by congressional legislation
D. Lowers the value of the multiplier