Question # 1

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.

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

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 there is a price floor there will be

Choose an answer

Shortages

Surpluses

Equilibrium

None of these

If an economy experience an increase in productivity it means that.

Choose an answer

the level of output has risen

Employees are working harder than before

Output per unit of input has risen

Technical change has taken place

Which of the following type of taxes is the most regressive.

Choose an answer

Income taxes

Sales taxes

Excise taxes

None of these

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.

Public utilities tend to be

Choose an answer

Inefficient

Natural monopolies

subject to increasing costs

None of these

The form of dumping that represents the greatest potential net welfare loss the for importing nation is.

Choose an answer

Predatory dumping

Sporadic dumping

Persistent dumping

Year end dumping

In the circular flow diagram firms.

Choose an answer

Receive revenue and supply resources in the resource market

Incur costs and demand resources in the resource market.

Receive revenue and demand resources in the product market.

Incur costs and supply goods and services in the product market.

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

MRSxy being 6 means

Choose an answer

Consumer is willing to give up 6 units of x for one of y

Preference for y is 6 times that of x

Both of the above

None of these

The largest trading partner of Pakistan is

Choose an answer

Italy

US

USA

None of these

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 productivity curve

Choose an answer

Is given by the labor productively

Shows the change in real GDP per hour of labor as the amount of capital per hour labor changes

Shows the change in technology

Is given by the equation Y = F ( L,K, T)

The "balance trade" is a record of.

Choose an answer

Exports and imports of financial assets

The current account plus capital account

The export of goods and services.

the value of merchandise exports minus imports

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

According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than

Choose an answer

Average total cost

Average variable cost

Average foxed cost

Marginal cost

A tariff can________ raise a country's welfare.

Choose an answer

Sometimes

Never

Always

None of these

Non tariff trade barriers could include all of the following except

Choose an answer

Domestic content laws

Government procurement policies.

Health , safety and environmental standards

Autidumpiing /countervailing duties applied to imports

The investment demand curve shifts right ward if

Choose an answer

The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

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