Economics & Trade Terms MCQs with Answers

The excess of an expenditure flow over the income flow is termed as _

• A.Surplus
• B.Deficit
• C.Inflation
• D.Stagnation

The growth of an economy from backwards to an advanced economy is known as:

• A.Economic development
• B.Economic growth
• C.Economic planning
• D.Economic integration

Globalization refers to _?

• A.Restriction of cross-border movement
• B.Isolation of national economies
• C.Decentralization of global trade
• D.More integral and interdependent world

In monopolistic competition, product differentiation refers to?

• A.Offering products that are completely identical
• B.Offering products that are similar but not identical
• C.Offering only one unique product with no substitutes
• D.Offering products at the same price across all firms

What is free trade?

• A.Trade restricted by government-imposed tariffs only
• B.Trade conducted exclusively within a single country's borders
• C.Goods and services can be bought and sold across international borders
• D.Exchange of goods limited to barter systems between nations

Past Paper MCQ

What is considered the smallest unit of ownership in a company?

• A.Bond
• B.Share
• C.Debenture
• D.Dividend

Free market and private ownership are features of which economic system?

• A.Socialism
• B.Communism
• C.Capitalism
• D.Feudalism

A purely competitive firm will produce where P = MC because this?

• A.Maximizes profits
• B.Minimizes costs
• C.Maximizes revenue
• D.Achieves productive efficiency

According to the Economic Survey of Pakistan 2024-25, Pakistan issued "Green Sukuk" for the first time, to the tune of _?

• A.Rs 15 Billion
• B.Rs 50 Billion
• C.Rs 100 Billion
• D.Rs 30 Billion

The term "crowding out" refers to?

• A.The reduction in exports caused by currency appreciation
• B.The increase in consumer spending due to lower interest rates
• C.The displacement of foreign investment by domestic capital
• D.The decrease in private investment that occurs when government borrowing increases