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Online Tests
PPSC Economics Chapter 10 Most Frequently Asked Economics MCQS MCQs With Answers
Question # 1
Which of the following is automatic stabilizer.
Choose an answer
Unemployment benefits
Spending on education
Defense spending
Net interest
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Question # 2
The exogenous variable in the income equation C +!+G = y is
Choose an answer
C
I
G
None of these
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Question # 3
All economic model ae based on
Choose an answer
Realistic assumptions
Assumptions which can never be perfectly realistic
Unrealistic assumptions
None of the above
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Question # 4
the difference between actual and planned expenditure is equal to.
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X -M
M- X
Unplanned inventory change
Excess reserves of depository institutions.
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Question # 5
Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.
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Destabilizing
Stabilizing
Inflationary
Deflationary
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Question # 6
Suppose that the domestic government allows a specific number of goods to be imported each year but it does not spicily from where the product is shipped or who is permitted to import such a trade barrier is known as
Choose an answer
an import tariff
A tariff rate quota
A selective quota
A global quota
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Question # 7
Which of the following is most likely to benefit a debtor.
Choose an answer
Un anticipated deflation
Anticipated deflation
Unanticipated inflation
anticipated inflation
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Question # 8
There is positive relationship between multiplier and.
Choose an answer
Marginal propensity to consume
Marginal propensity to save
Marginal efficiency of capital
all of these
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Question # 9
International trade forces domestic firms to become more competitive in terms of.
Choose an answer
The introduction of new products
Product design and quantity
Product price
All of the above
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Question # 10
If saving rate is 12.0% , ICOR value is 3% and population Rate is 2.0% then the Growth Rate would be.
Choose an answer
2.0%
3.65
4.0%
6.0%
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Question # 11
In autarky when a community maximizes its standard of living its production points is.
Choose an answer
Below the production possibility frontier
On the production possibility frontier
Above the production possibility frontier
Can't tell without more information.
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Question # 12
The supply of foreign currency tends to be
Choose an answer
upward sloping
down ward sloping
Vertical
any of the above
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Question # 13
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
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Question # 14
The fundamental economics problem faced by all societies is
Choose an answer
Un employment
In equality
Poverty
Scarcity
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Question # 15
The central bank of a country plays a significant role in her macroeconomics performance by regulating the.
Choose an answer
Money supply
Supply credit
Interest rate
All of these
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Question # 16
The bowed shape of the production possibilities curve illustrates
Choose an answer
The law of increasing marginal cost
the production is inefficient
the production in unattainable
The demand is relatively inelastic
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Question # 17
The agricultural price support program is an example of.
Choose an answer
A price celling
A price floor
Equilibrium pricing
None of these
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Question # 18
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
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Question # 19
A tax of 20 cents per unit of imported cheese would be an example of a
Choose an answer
Compound tariff
Effective traiff
Ad valorem tariff
Specific tariff
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Question # 20
The relation ship between the exchange rate and the prices of tradable goods is known as the.
Choose an answer
Purchasing power parity theory
Asset markets theory
Monetary theory
Balance of payments theory
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Question # 21
A change in the full employment quantity of labor_________ the short run aggregate supply curve and ______ the long run aggregate supply curve.
Choose an answer
shifts ; shifts
shifts ; does not shift
does not shift ; shift
does not shift ; does not shift
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