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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
As long as the principle of diminishing marginal utility is operating any increased consumption of a good.
Choose an answer
Lowers total utility
Produces negative total utility
Lowers marginal utility and therefore total utility
Lowers marginal utility, but may raise total utility.
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Question # 2
In price discrimination, which section of the market is charged the higher price.
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The section with the richest people
The section with the oldest people
The section with the most inelastic demand
The section with the most elastic demand
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Question # 3
According the Keynes when the great depression started , the government should have.
Choose an answer
Done nothing
Decreased the money supply
Had a large increase in government spending.
Enacted high tariffs, such as the smoot Hawley tariff
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Question # 4
In a pure market economy which of the following is a function of the price.
i - provide information to sellers and buyers
ii- Provide incentives to sellers and buyers
Choose an answer
I only
ii Only
both i and ii
Neither i nor ii
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Question # 5
What is the per unit marginal cost of increasing production from 20 to 25 units.
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Rs. 3,500
Rs.100
Rs.4,000
Rs.500
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Question # 6
Which of the following would qualify as an aggregate supply shock.
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An unexpected increase in oil prices
Seasonally expected increase in oil prices
An unexpected reduction in consumer confidence
an anticipated tax cut
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Question # 7
If B is a subset of A, then AUB =
Choose an answer
B
Intersection of A and B
A
None of these
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Question # 8
In monopoly the firm can
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Price
Output
Either price or output
Both a and b
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Question # 9
If the money supply change was correctly and fully anticipated for a change of M to MI new classical macroeconomics under the assumption of rational expectations would predict a movement from.
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Pont Eo to point E1
Pont Eo to point E2
Pont Eo to point E3
Pont E3 to point E2
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Question # 10
In linear consumption function with a positive slope less that on means that if income increase, consumption will.
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Fall
Not change
Fluctuate
Increase
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Question # 11
A country transactions with the rest of the world are recorded in the
Choose an answer
Balance of international indebtedness
Balance of financial transactions
Balance of payments
Income statement
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Question # 12
Other things equal a decrease in autonomous consumption shifts the _____ curve to the
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IS ; RIGHT
IS ; Left
LM ; Left
LF ; Right
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Question # 13
When capital mobility is perfect, interest rate differentials will tend to be offset by
Choose an answer
Price differences.
Balance of payments differences.
Current account differences.
Expected exchange rate changes
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Question # 14
The Lorenz curve is used to show relative in equality in the distribution of.
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Wages
Income
Wealth
Profit
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Question # 15
Micro economics studies such topics as
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The factors that determine inflation
The forces that influence the price of shoes
The determinants of total output
Whether the unemployment rate will rise or fall
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Question # 16
An ethics that treats only humans as morally considerable is called.
Choose an answer
Holism
Eco centrism
Anthropocentrism
None of these
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Question # 17
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
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Question # 18
The money multiple tells us teh ultimate increase in.
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The income level due to an increase in the money base
The money supply due to an increase in the money base.
The money supply due to an increase in the income level
The income level due to an increase in the money supply
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Question # 19
In balance of payments accounting tourism and travel are classified in the
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Merchandise trade account
Services account
Unilateral transfers account
Capital account
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Question # 20
Eco philosophy deals with philosophy of
Choose an answer
Nature
Mind
Science
None of these
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Question # 21
A public good will
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Be underprovided in the free market
Be overprovided in the free market
Not be provided in the free market
Has no opportunity cost
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Question # 22
"Treating an individual as typical a group" is the definition of.
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Pure dissemination
Statistical discrimination
Human capital
Specific skills
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Question # 23
Disinflationary demand management policies.
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Achieve a lower rate of inflation without causing a decreases in output.
Reduce output but have no initial effect on the inflation rate
Require an increase in government spending.
Require a reduction in the growth rate of the nominal money supply.
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Question # 24
Which of the following is not a category of consumption spending in the national income accounts.
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Consumer durables
Non durable goods
Services
Housing Purchases
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Question # 25
If the exchange rate is above the equilibrium level.
Choose an answer
There is excess demand and teh exchange rate will fall
There is excess supply and the exchange rate will fall
There is excess demand and the exchange rate will rise
There is excess supply and the exchange rate will rise
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Question # 26
The institutional framework developed in 1974 to promote trade liberalization is known as.
Choose an answer
WTO
GATT
IMF
World bank
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Question # 27
Astory is a starting point of.
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Experimental design
Quantitative research
Scientific method
Narrative method
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Question # 28
Money or paper currency serves at least _______ functions.
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Three
Four
Five
Seven
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Question # 29
Tax incidence is the
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Ultimate distribution of a tax's burden
Measure of the inpat the tax has on employment and output
Behavior of shifting the tax to another party
Structure of the tax
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Question # 30
Which of the following type of taxes is the most regressive.
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Income taxes
Sales taxes
Excise taxes
None of these
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Question # 31
Economics given can be shown by
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An inward shift of the production possibility frontier
A movement down the production possibility frontier
An outward shift of the production possibility frontier
A movement up the production possibility frontier
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