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.

71. Rate of growth of an economy is measured in terms of________________?

A. Per capita income
B. Industrial development
C. Number of people who have been lifted above the poverty line
D. National income

72. Which of the following is not required while computing Gross National Product (GNP) ?

A. Net foreign investment
B. Private investment
C. Per capita income of citizens
D. None of the above

73. Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ?

A. a fall in living standards
B. a more youthful population
C. an ageing population
D. an increase in population

74. What can a government do to increase demand in its economy ?

A. Budget for a surplus
B. Cut taxes
C. Encourage savings
D. Reduce its expenditure

75. To determine the correct level of GNP, it is necessary to ?

A. To add up the values of goods and services for one year
B. Add up all savings
C. To count all imports
D. To add up the value of semi-finished goods

76. The term “Dumping” means ?

A. The sale of the sub-standard commodity
B. Sale in a foreign market of a commodity at a price below marginal cost
C. Sale in a foreign market of a commodity just at marginal cost without too much of profit
D. Smuggling of goods without paying any customs duty

77. GNP includes ?

A. A loan from a bank
B. A loan from one’s parents
C. Gifts and donations
D. A broker’s commission

78. Market value of all final goods and services produced in a country during a year is definition of ?

A. NI
B. NNP
C. GNP
D. Consumption

79. Which of the following would increase national income ?

A. Increase in taxation
B. Increase in savings
C. Increase in govt. spending
D. Decrease in consumption spending

80. 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