Economics MCQs For Lectureship CSS PMS And NTS Part IV
1 What is NI = NE?
2 What is Per capita income?
Income per head
3 What we get when indirect taxes are deducted from NNP and subsidies are added?
4 Why transfer payments are not included in national income?
Double counting would result
5 How to determine the correct level of GDP?
Add up the values of goods and services during one year
6 When real national income increases?
Quantity of goods and services increases
7 Construction of house is
8 Unemployment allowances paid by government is considered as transfer of payments
Transfer of payments
9 GDP is always greater than what?
10 What are the four factor payments?
Wages, rent, interest and profits
11 What are social security payments?
12 What will happen to private savings if government increases taxes?
13 On whom corporate tax is levied?
14 What we get if we deduct direct tax from personal income?
15 Which is the largest part of national income?
16 What does transfer payments means?
The payment without work
17 Direct taxes are not part of
Disposable Personal Income
18 By how many methods national income can be measured?
19 What is the difference between GDP and GNP?
GNP = GDP + net income from abroad
20 To get NNP, what we should deduct from GNP?
21 During GDP measurement, to avoid double counting, what economists do?
Calculate value added at each stage of production
22 How to find NNP from GNp?
By deducting depreciation allowance
23 What is undistributed profit?
Income earned but not received
24 What is GNP?
The market value of all goods and services produced in an economy
25 In terms of national income accounts, what multiple counting refers to?
Counting currently produced goods more than one time
26 What is net investment?
Gross investment minus capital consumption allowance
27 Personal Income is equivalent to what?
NI plus unearned receipts minus earning not received
28 What are net exports?
Total exports minus total imports
29 What is national income?
Total income earned while producing the national product
30 Traffic fines are included in what?
Personal Income but not in disposable Personal Income
31 National income is a measure of what?
Payments made to factors of production
32 When a country is considered poor?
Less production of goods per capita
33 A country is also considered poor with
Less GNP per capita
34 What relation do Consumption and National Income have?
A functional relation
35 What is Macroeconomics?
Aggregate economic activity
36 What is a closed economy?
No international trade is concluded
37 When one or more persons are living in a joint family, in economics it called
38 What is the largest type of income in Pakistan?
Compensation of employees
39 Can you define an open economy?
Interact with other economies
40 On whom corporate tax is levied?
Joint stock companies
41 Where does the largest part of national income go?
42 What does transfer payment means?
The payment without work
43 In disposable income direct tax are
44 Is it true that National Income = National Expenditure?
45 Is it true that NI = NNP – Indirect taxes?
46 What is deducted from GNP to get NNP
47 To get GNP what should be added to GDP?
Net income from abroad
48 What is the position of National Income in equilibrium?
S = I
49 What happens if saving exceeds investment?
National income falls
50 Consumer goods are those which are
Directly used by the people
51 What Circular flow income includes?
Income and expenditure
52 What does the National income of a country not include?
Illegal and unreported income
53 Persons having joint family budget, in economics they are called
54 At equilibrium level of national income, saving is equal to what?
55 A Rise in exports may case a rise in
56 What is Marginal propensity to consume?
A ratio of additional income consumed
57 What is aggregate demand?
58 What is MPC?
Change in consumption divided by change in income
59 A Coin of Rupee is an example of
60 Which kind of cheque cash cannot be drawn directly from the bank?
61 It is necessary that money material should be
62 In Pakistan, what is money of account?
63 What is barter system?
If no money is used to exchange good
64 What does Convertible money means?
Government can give gold against it
65 Money that is used as an official medium of exchange, what is it called?
66 How can the government control inflation?
Increasing supply of goods
67 The Government of Pakistan issues currency on which basis?
Demand for money in the country
68 What type of relation does quantity of money has with supply of money?
69 What does Commercial banks create?
70 A Cheque is
Not a money
71 What is the most important feature of money?
72 How State Bank can change?
73 How the supply of money in a country can be increased?
The purchased of bonds by State Bank
74 When the use of paper money started?
200 years ago
75 Which major property paper money does not have?
76 Which function of money a saving account in a bank represents?
Store of value
77 Who implement monetary policy?
Central Bank of a country
78 What property a money must have?
79 Savings can be promoted by
Increase in personal income
80 What is a Treasury Bill?
A document used for short term loan to the government
81 What does speculative demand for money depends on?
Rate of interest
82 What will happen if money supply in a country decreases?
Prices will fall
83 In the equation MV = PY, what is V?
Velocity of the circulation of money
84 In the equation MV = PY, What is M?
85 According to Keynes, how many motive are there for holding money?
86 What Quantity Theory of Money explains?
Value of money depends upon quantity of money
87 Does Cross cheque has a cross (X) sign?
No it does not have a cross sign
88 What are types of Inflation?
Demand Pull and Cost Push
89 What does Liquidity of a monetary asset means?
Ready acceptability of monetary asset
90 What does Barter means?
Trade without the use of money
91 With reference to currency system of a country, what does token money means?
The money which has higher face value
92 The paper money in Pakistan is
93 The characteristic of liquidity belongs to
94 What is Credit money?
A kind of money
95 What happened to purchasing power of money during deflation?
96 What is Velocity of circulation of money?
The number of times a unit of money changes hand annually
97 Who gave the equation of exchange PT = MV?
98 In Pakistan the value of money is determined by
General price level
99 With the fall of money value, who gets more benefit?
100 If the quantity of money is doubled then according to Quantity theory, what will be the value of money?