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.

**Question 111: A budgetary deficit means?**

A. Total expenditure is more than total revenue
B. Current expenditure is more than current revenue
C. Capital expenditure is more than capital revenue
**D. Total expenditure is more than current revenue**

**Question 112: Gross National income is always more than Net National income because it includes?**

**A. Foreign income**
B. Capital consumption allowance
C. Indirect taxes
D. Direct taxes

**Question 113: According to the law of demand, When?**

**A. Price increase demand decreases**
B. Price decreases demand decreases
C. Price increased demand increases
D. None of these

**Question 114: The cause of inflation is?**

A. Increase in money supply
B. Fall in production
**C. Increase in money supply and fall in production**
D. Decrease in money supply and fall in production

**Question 115: What would cause a country’s exchange rate to fall?**

**A. An increases demand for its exports**
B. Increased demand for its imports
C. An increased inflow of capital
D. None of the above

**Question 116: When the stock market is rising it is?**

A. Bearish
**B. Bullish**
C. Hottest
D. Rising up

**Question 117: Economic development is measured on the basis of?**

A. Increase in nominal GNP
**B. Increase in real GNP**
C. Increase in personal income
D. Increase in government revenue

**Question 118: Government of Pakistan issues currency on the basis of?**

A. Availability of gold in the country
B. Availability of dollars in the country
C. Demand for money in the country
**D. Tax collection**

**Question 119: Velocity of circulation of money means?**

**A. The number of times a unit of money changes hands annually**
B. The number of times as unit of money changes hands monthly
C. The number of times a unit of money changes hands annually
D. The number of times a unit of money changes value

**Question 120: A tariff______________?**

A. Increase the volume of trade
**B. Reduces the volume of trade**
C. Has no effect on the volume of trade?
D. A and C of above