laboursonline – MCQs, Mock Tests | NTS NTS CURRENT AFFAIRS ECONOMIC MCQ SET 2

The impact and incidence of sales tax is

1. on the consumer
2. on the seller
3. on the producer
4. none of these

✅ Correct Answer: 1

The largest indirect Tax revenue collection is through

1. Income Tax
2. GST
3. Customs duty
4. Wealth tax

✅ Correct Answer: 2

Basket of main currencies is

1. reference rate
2. currency peg
3. exchange rate
4. special drawing rights

✅ Correct Answer: 4

The direct exchange of goods and services for other goods and services is known as

1. Primitive trade
2. Barter
3. Non market trade
4. special drawing rights

✅ Correct Answer: 2

Poverty line is determined by

1. Per capita calories intake
2. Income of the family
3. Housing and clothing facilities
4. Non market trade

✅ Correct Answer: 2

Which one of the following tax systems will move in the direction of reduction of economic disparities?

1. Flat rate tax
2. Progressive tax
3. Regressive tax
4. Income of the family

✅ Correct Answer: 2

In Keynesian theory equality between saving and investment is brought about by changes in the

1. level of income
2. rate of interest
3. supply of money
4. The law of constant returns to scale holds

✅ Correct Answer: 1

For the Cobb-Douglas Production Function

1. The law of diminishing returns to scale holds
2. The law of constant returns to scale holds
3. The law of increasing returns to scale holds
4. Originality of utility

✅ Correct Answer: 2

The assumption which makes the Indifference Curve convex to the origin is

1. A diminishing Marginal Rate of substitution
2. Originality of utility
3. Cardinality of utility
4. Dividends

✅ Correct Answer: 1

One of the following is included in Personal Income, but excluded from National Income, which one is that?

1. Dividends
2. Wages
3. Interest on Public Debt
4. Originality of utility

✅ Correct Answer: 3

An isoquant is convex to the origin because of

1. law of diminishing returns
2. diminishing marginal rate of substitution between factors
3. law of increasing returns
4. Dividends

✅ Correct Answer: 2

The relationship between price and quantity bought at that price is called

1. demand curve
2. supply curve
3. law of one price
4. equilibrium position

✅ Correct Answer: 1

Which of the following is NOT an indirect tax?

1. income tax
2. sales tax
3. service tax
4. excise duty

✅ Correct Answer: 1

Which of the following is NOT a direct tax?

1. income tax
2. corporate tax
3. capital gains tax
4. excise duty

✅ Correct Answer: 4

Currently, about how many beneficiaries (families) are receiving financial help under Benazir Income Support Program (BISP) of the government of Pakistan?

1. 4.0 million
2. 4.5 million
3. 5.0 million
4. 5.5 million

✅ Correct Answer: 2

Currently, about 4.5 million beneficiaries are receiving financial help of ______ per month under BISP of the government of Pakistan.

1. Rs. 1,000
2. Rs. 1,500
3. Rs. 2,000
4. Rs. 2,500

✅ Correct Answer: 3

Currently, the total installed capacity of electricity generation in Pakistan (Year 2020) is

1. 25,972 MW
2. 30,972 MW
3. 35,972 MW
4. 40,972 MW

✅ Correct Answer: 3

The largest source of electricity generation in Pakistan is

1. thermal
2. hydel
3. nuclear
4. renewable

✅ Correct Answer: 1

The current Tax-to-GDP ratio in Pakistan (Year 2020) is

1. 9%
2. 11%
3. 13%
4. 15%

✅ Correct Answer: 2

The current policy rate by state bank of Pakistan is _____% per annum.

1. 7.0
2. 7.5
3. 8
4. 8.5

✅ Correct Answer: 1

Pakistans largest export industry is

1. Arms
2. Food
3. Marble
4. Textile

✅ Correct Answer: 4

Pakistans largest export item is cotton & cotton manufactures. The second largest export item is

1. Arms
2. Rice
3. Leather
4. Marble

✅ Correct Answer: 2

The major government policies that can be used to pursue its macroeconomic goals are

1. fiscal policy and debt policy
2. fiscal policy and monetary policy
3. fiscal policy, debt policy and monetary policy
4. fiscal policy, monetary policy and subsidies

✅ Correct Answer: 2

The governments fiscal policy denotes the use of governments

1. taxes and expenditure
2. consumption and investment
3. taxes and revenue
4. consumption and expenditure

✅ Correct Answer: 1

Three main drivers of economic growth are

1. consumption, investment and employment
2. savings, investment and debt
3. revenue, expenditure and savings
4. consumption, investment and savings

✅ Correct Answer: 4

Pakistani society like other developing countries has

1. low marginal propensity to consume
2. high marginal propensity to consume
3. high marginal propensity to invest
4. high employment

✅ Correct Answer: 2

The total area of Pakistan is ________ km.

1. 5,96,095
2. 6,96,095
3. 7,96,095
4. 8,96,095

✅ Correct Answer: 3

A REPO or repurchase agreement is a form of short-term _____ by state bank.

1. borrowing
2. savings
3. investment
4. adjustment

✅ Correct Answer: 1

The current REPO (or Repo Floor) rate of State Bank of Pakistan is _____% per annum.

1. 6
2. 7
3. 8
4. 9

✅ Correct Answer: 1

The current Reverse REPO (or Repo Ceiling) rate of State Bank of Pakistan is _____% per annum.

1. 6
2. 7
3. 8
4. 9

✅ Correct Answer: 3

The current government borrowed _____ billion from friendly countries as a short-term measure.

1. $6.2
2. $7.2
3. $8.2
4. $9.2

✅ Correct Answer: 4

According to the recently held census, the total population of Pakistan is

1. 200.77 million
2. 207.77 million
3. 210.77 million
4. 217.77 million

✅ Correct Answer: 2

The total GDP of Pakistan (Year 2020) in nominal terms is about ______ billion.

1. $284.2
2. $324.2
3. $364.2
4. $404.2

✅ Correct Answer: 1

The GDP growth rate in the current financial year of 2020 is recorded as

1. 1.38%
2. 0.38%
3. 0.38%
4. 1.38%

✅ Correct Answer: 2

The per capita income in Pakistan is about

1. $1188
2. $1288
3. $1388
4. $1488

✅ Correct Answer: 3

The three main sectors of Pakistan economy are

1. agriculture, industry and manufacturing
2. agriculture, industry and transport
3. agriculture, education and industry
4. agriculture, industry and services

✅ Correct Answer: 4

Which sector of Pakistan economy provides the largest employment in Pakistan?

1. agriculture
2. industry
3. services
4. manufacturing

✅ Correct Answer: 1

Which sector is the major source of tax revenues for the government?

1. agriculture
2. industry
3. services
4. manufacturing

✅ Correct Answer: 2

Which sector is the largest contributor to the GDP?

1. agriculture
2. industry
3. services
4. manufacturing

✅ Correct Answer: 3

The recent census was held in 2017, the last census was held in the year of

1. 1998
2. 2000
3. 2002
4. 2004

✅ Correct Answer: 1

The current unemployment rate (Year 2020) in Pakistan is about

1. 2%
2. 5%
3. 8%
4. 11%

✅ Correct Answer: 4

To address the energy shortage, government of Pakistan incorporated electricity generation capacity of _____ between 2013 and 2018.

1. 6,230 MW
2. 8,230 MW
3. 10,230 MW
4. 12,230 MW

✅ Correct Answer: 4

The most important sub-sector of the industrial sector is

1. construction
2. transport
3. real estate
4. manufacturing

✅ Correct Answer: 4

The agriculture sector contributes _______ to the countrys Gross Domestic Product (GDP).

1. 19.30%
2. 21.30%
3. 23.30%
4. 25.30%

✅ Correct Answer: 1

The industry sector contributes ______ to the countrys GDP.

1. 18.47%
2. 20.47%
3. 22.47%
4. 24.47%

✅ Correct Answer: 2

The services sector contributes ______ to the countrys GDP.

1. 45.23%
2. 50.23%
3. 55.23%
4. 60.23%

✅ Correct Answer: 4

The three Stock Exchanges Karachi, Lahore and Islamabad were merged into Pakistan Stock Exchange (PSX) on 11 January

1. 2014
2. 2015
3. 2016
4. 2017

✅ Correct Answer: 3

Foreign exchange reserves of Pakistan reached the new historic high of ______ on October 14, 2016.

1. $24.5 billion
2. $28.5 billion
3. $32.5 billion
4. $36.5 billion

✅ Correct Answer: 1

The growth in the Large-Scale Manufacturing (LSM) sector during the financial year 2020 is about

1. 5.4%
2. 2.4%
3. 1.40%
4. 4.40%

✅ Correct Answer: 1

Under CPEC, 22 projects have been launched costing about _____ billion.

1. $18.5
2. $28.5
3. $38.5
4. $48.5

✅ Correct Answer: 2