Question # 1

The impact and incidence of sales tax is

Choose an answer

On the consumer

On the seller

On the producer

None of these

The multiplier for a change in social security benefits is equl to the multiplier for a change in the same direction in salaries of Evanston police officers tiems.

Choose an answer

the marginal propensity to save

Minus the marginal propensity to save

The marginal propensity to consume

Minus the marginal propensity to consume

According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________

Choose an answer

rise ; rise

fall ; rise

rise ; fall

fall ; fall

An indifference curve gives

Choose an answer

the actual combination of goods that consumer chooses

the minimum choice of the consumer

the highest level of satisfaction

None of these

If the coefficient of income elasticity is negative.

Choose an answer

Inferior good

Normal good

Luxury good

All of these

If a small country imposes a tariff on an imported good its terms of trade will

Choose an answer

Improve

Worsen

Not change

any of the above

____________ 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

The nation, that, following currency depreciation, the balance of trade falls for a while before increasing is called a ________ effect.

Choose an answer

Relative price

Elasticity

J- Curve

Pass through

Those who argue in favor of import protection generally give the impression that such restricted trade will

Choose an answer

Decrease the level of national security

Provide benefits to some particular industry

Provides benefits to the entire nation

Not yield welfare losses for the nation

The term of trade is given by the process.

Choose an answer

Paid for all goods exported by the home country

Received for all goods exported by the home country

Received for exports and paid for imports.

Of primary product as opposed to manufactured products.

Livestock is

Choose an answer

An independent sector

Sub -sector of agriculture

Should be a part of Agriculture

Would become a part of Agriculture

All economic model ae based on

Choose an answer

Realistic assumptions

Assumptions which can never be perfectly realistic

Unrealistic assumptions

None of the above

A firm can fund an investment from its own sources, the opportunity cost of its investment is

Choose an answer

Less than zero

Zero

More than zero

Neither

Disposable incomes is equal to.

Choose an answer

National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

The nominal interest rate is 5% and the inflation rate is 2% the real interest rate is.

Choose an answer

2%

3%

7%

4%

The monetary base is composed of.

Choose an answer

Gold and silver

Currency and reserves

Currency only

Currency and checkable deposits

the theory of overlapping demands predicts that trade in manufactured goods is unimportant by countries with very different .

Choose an answer

Tastes and preferences.

Expectations of future interest rate levels

Per capita income levels

Labor productivities.

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

A market is in equilibrium when

Choose an answer

Ac = P

MC = MR

AC =AR

TC =TR

Monopoly market is characteristics by

Choose an answer

A large number of sellers

Only one seller

Thousand of seller

All of these

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