Global Economy 2026 MCQs with Answers and Explanations

Practice Global Economy 2026} MCQs. from Current Affairs subject. with solved answers and explanations. updated syllabus-based questions.

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Question 1: Which South Asian country implemented a mandatory four-day workweek in March 2026 to conserve dwindling oil and energy stockpiles?

To manage the acute fuel shortage caused by the Strait of Hormuz closure, Pakistan introduced a four-day workweek and remote work policies in March 2026.
Pakistan Energy Conservation Fuel Crisis 2026 Economy

Question 2: By how much did the price of petrol increase in a single adjustment in Pakistan during March 2026 due to global oil volatility?

On March 8, 2026, Pakistan saw a record-breaking single increase of Rs. 55 per liter in petrol prices, attributed to the Middle East conflict and rising international benchmarks.
Petrol Prices Pakistan Economy Inflation March 2026

Question 3: Goldman Sachs downgraded India's 2026 GDP growth forecast to what percentage in late March 2026, down from an earlier estimate of 7%?

Citing the prolonged disruption of energy trade via the Strait of Hormuz and higher import costs, Goldman Sachs cut India's growth projection to 5.9% in March 2026.
India Gdp Goldman Sachs Energy Shock Economic Forecast

Question 4: Beyond energy, the closure of the Strait of Hormuz has disrupted roughly what percentage of globally traded ammonia-based fertilizer?

The conflict suspended the movement of approximately 30% of globally traded ammonia-based fertilizer, posing a severe threat to South Asian agricultural productivity and food prices.
Fertilizer Crisis Food Security Agriculture Global Trade

Question 5: On March 30, 2026, which measure did the Indian government take regarding diesel excise duties to mitigate the impact of the fuel crisis?

To shield consumers from the energy shock, India lowered the central excise duty on diesel from INR 10 per liter to zero on March 30, 2026.
India Policy Excise Duty Diesel Prices Fuel Subsidies

Question 6: Following the closure of the Strait of Hormuz on March 4, 2026, which major energy company was forced to declare 'force majeure' on all exports?

QatarEnergy declared force majeure in early March 2026 after the maritime blockade made it impossible to ship LNG, causing global spot prices for gas to increase by over 140%.
Qatarenergy Lng Crisis Energy Market Strait Of Hormuz

Question 7: As of late March 2026, the European Central Bank (ECB) identified which 'dual threat' as the reason for cutting GDP growth projections?

The ECB warned that the combination of the Middle East energy shock and manufacturing slowdown was pushing Europe toward a period of 'Stagflation'—high inflation with low growth.
Ecb Stagflation Energy Shock Monetary Policy

Question 8: What historic milestone did Gold prices reach in February 2026 as geopolitical tensions began to mount?

Safe-haven demand pushed Gold prices to a record high of over $5,500 per troy ounce in February 2026, a level not seen since the height of speculative rallies in previous decades.
Gold Prices Safe Haven Market Volatility Commodities

Question 9: In the January 2026 Global Economic Prospects report, what was cited as the 'primary tailwind' that helped the global economy resist early trade tensions?

The World Bank noted that the global economy's resilience in early 2026 was largely due to an unprecedented surge in AI spending and tech-driven productivity gains.
World Bank Ai Economy Tech Investment Gdp Drivers

Question 10: Which major economic legislation in the US provided tax incentives for corporate investment, contributing to the 'US-Europe growth gap' in early 2026?

The IMF's January update highlighted the 'One Big Beautiful Bill Act' (OBBBA) as a key reason for the US's stronger-than-expected growth compared to the Eurozone.
Us Policy Fiscal Stimulus Corporate Investment Obbba

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