Question # 1

Price controls are

Choose an answer

Necessary for consumer's welfares

A must to check inflation

Doomed to fall

None of these

If there is a price floor there will be

Choose an answer

Shortages

Surpluses

Equilibrium

None of these

Indirect taxes are

Choose an answer

Direct taxes - subsidies

Subsidies

Sales taxes

Income taxes

The overall Budget Deficit is financed from

Choose an answer

External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

When unintended investment is positive

Choose an answer

Output tends to rise

Output tends to fall

Output is in equilibrium

None of these

Compared to the case of perfect competition.

Choose an answer

Monopolist is more likely to

Charge a higher price

Produce a lower quantity of the product

All of the above

A purely monetary explanation of the business cycle is proposed by

Choose an answer

Hawtrey

Schumpeter

Hansen

None of these

Disposable income is.

Choose an answer

Income less taxes

Income less direct taxes

income less indirect taxes

All of these

The impact and incidence of sales tax is

Choose an answer

On the consumer

On the seller

On the producer

None of these

The asset market approach a more helpful in explaning.

Choose an answer

why excahnge rates remain quite stable

Why governments change their money supplies.

Long term exchange rate movement.

Short term exchange rate movement.

Devaluation leads to.

Choose an answer

Increase in imports

Increase in exports

Decline in imports

None of the above

In the theory of the firm profit maximization is always synonymous with.

Choose an answer

Profitability

Economic profit making

maximization of the sales revenue

None of these

Absolute advantage is determined by.,

Choose an answer

Actual difference in labor productivity between countries.

Relative difference in labor productivity between countries.

Both a and b

neither a and b

____________ represents the difference between what consumers have to pay for a product and what they are willing and able to pay.

Choose an answer

Producer surplus

Deadweight surplus

Government surplus

Consumer surplus

International trade is based on the idea that.

Choose an answer

Exports should exceed imports

Imports a should exceed exports

Resources are more mobile internationally than are goods

Resources are less mobile internationally than are goods.

The overall Budget Deficit is financed from

Choose an answer

External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

Similar to import tariffs, import quotas tend to result in.

Choose an answer

Higher prices and reduced imports

Increasesed government revenue

Increased consumer surplus

Decrease producer surplus

Why is the law of diminishing marginal returns ture.

Choose an answer

Specialization and division of labor

Spreading the average fixed cost

Limited capital

All factors being variable in the long run

A decrease in lump sum taxes is an examples of.

Choose an answer

Contractionary fiscal policy

Expansionary fiscal policy

A change in induced taxes

A and c

If tastes are identical between countries than comparative advantage is determined by

Choose an answer

Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

International trade in goods and services is sometimes used as a substitute for all of the following except.

Choose an answer

International movements of capital

International movement of labor

International movement of technology

Domestics production of different goods and services

More Classes

Other Links

PPSC Economics Chapter 10 Most Frequently Asked Economics MCQS MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer