Economics explores how resources are utilized and their value maximized under specific conditions. It entails a thorough examination of the production, distribution, and consumption of goods and services. GuruMCQs.com provides all updated Economics MCQs. The most frequently repeated economics MCQs section is encountered in Inspector, ASI, Sub-inspector, Constable, FPSC, PPSC, ETEA, FIA, Police, Army, Navy, Airforce, IB, MOFA, ASF, LHC, Educators, and various other competitive exams, as well as government and private job assessments. MCQs on Economics cover topics like Basic Economic MCQs, Indirect Tax and Economic Welfare, Analysis of Interest Rate Changes, Carbon Trading, Changing Market Price, and much more. Also, check Auditing MCQs with answers here.

101. Which of the following must always balance ?

A. Balance of visible trade
B. Balance of invisible trade
C. Balance on the current account
D. Balance of payments

102. Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is ?

A. Less than one
B. Greater than one
C. Equal to one
D. Zero

103. What term is given to unemployment caused by a downturn in the business cycle ?

A. Underemployment
B. Disguised unemployment
C. Temporary unemployment
D. Cyclical unemployment

104. Which of the following terms refers to income that is saved and not invested ?

A. Capital
B. Deposit
C. Hoarding
D. Profit

105. Development means economics growth plus ?

A. Inflation
B. Deflation
C. Social change
D. Price stability

106. When aggregate supply exceeds aggregate demand ?

A. Business inventory accumulate
B. Unemployment exists
C. Price of consumer goods rise
D. People save more than they intended to save

107. Government policy about exports and imports is called ?

A. Monetary policy
B. Fiscal policy
C. Commercial policy
D. Finance policy

108. National Income is essentially composed of ?

A. All wealth of a nation
B. Annual Income of the central government
C. All income of the people on a year
D. Income derived from taxes by the central government

**Question 109: Economic Development?**

A. Is the same as economic growth
B. Means improvement in lifestyle
C. Exists when there is equal distribution of income
**D. All of the above**

**Question 110: Which is most likely to cause a more even distribution of income?**

A. An increase in indirect taxes
B. An increase in managers salaries
**C. An increase in progressive taxation**
D. An increase in the rate of inflation