Question # 1

An increase in aggregate demand will have most effect on prices if.

Choose an answer

Aggregate supply is price inelastic

Aggregate supply is price elastic

Aggregate supply has a unitary price elasticity

Aggregate demand is price inelastic

A supply curve is directly affected by

Choose an answer

Technology

Input costs

Government regulation

All of the above

the relation of productivity and income is discussed by Nurkse in.

Choose an answer

Vicious circle of poverty

balance growth theory

Unbalance growth theory

Big push theory

Which of the following the most elastic demand the extra revenue a firm receives from the services of an additional unit of a factor of production.

Choose an answer

Total revenue

Marginal physical product

Marginal revenues product

Marginal revenue.

Tertiary activity includes.

Choose an answer

Production

Services

Agriculture

None of these

In 1950's special imporant was given to

Choose an answer

Industrial sector

Services sector

Imports sector

Agricultural sector

General agreement on Tariffs and Trade was established in.

Choose an answer

1948

1949

1950

None of these

The Hecksher Ohlin theory explains comparative advantage as the result of difference in countries.

Choose an answer

Relative abundance of various resources.

Relative costs of labor

Economies of large scale production.

Research and development expenditures.

Zakat in an important feature of Islamic economics system which is given from

Choose an answer

Poor to rich

Producers to consumers

Banks to people

Rich to poor

Friend man's theory of consumption focuses on

Choose an answer

Past income

Current income

Disposable income

Permanent income

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

Which of the following is a normative statement in economics.

Choose an answer

More spending by the government reduces poverty

Higher taxes lead to less desire to work

the UK Economy is growing fast relative to other European Union members

The Government should concentrate on reducing unemployment

A concept which can take on different quantitative values is called a.

Choose an answer

Variables

Control groups

Values

paradigm

Normal profit occurs when

Choose an answer

Average revenue equals average variable cost

Marginal revenue equals marginal cost

Average revenue equals marginal cost

Average revenue equals average cost

In a market system, sellers act in ___________ interest, but thsi leads to behaviors in __________ interest.

Choose an answer

Self, self

Self, society's

Society's' , society's

society's, self

Guid up of foreign exchange reserves leads to.

Choose an answer

Decrease in money supply

increase in money supply

contraction in money supply

None of the above

Extremality's arise because there is a divergence between ____ and _

Choose an answer

Private costs, private benefits

Private costs, social costs of benefits

Social cost, social benefit

Insiders, outsiders

The substitution effect of a decrease in real interest rates is to cause a consumer to.

Choose an answer

Increase future consumption and decrease current consumption

Decrease future consumption and increase current consumption

Increase current consumption and increase saving

Decrease current consumption and increase saving.

By financial crowding our economists mean

Choose an answer

What the government borrows cannot be used for private investment

Government borrowing drives up interest rates.

Bank of England controls on commercial bank lending

Credit rationing

If a Set C contain all the elements which are present in both the set A and B then set C is called.

Choose an answer

Union of A and B

Intersection of A and B

Complement of A

Complement of B

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

Choose an answer

Rs.3.5 billion

Rs.1.5 billion

Rs. 4.9 billion

Rs.2.8 billion

Import substitution is an example of

Choose an answer

The principle of comparative advantage

The pricnipal of absolute advantage

An outward looking growth strategy

An inward looking growth strategy

Export led growth strategies tend to emphasize.

Choose an answer

Resource allocation based on the principle of absolute advantage.

Resource allocation based on the principle of comparative advantage.

Trade protection for exporting competing firms

Trade protection for import competing firms

Which of the following is an example of government policy that could reduce inflation.

Choose an answer

Increasing bank lending

increasing import duties

Reducing government expenditure

Reducing direct taxation

Which of the following organizations primarily provides long term loans to developing countries to help them develop their infrastructure such as schools hospitals and roads.

Choose an answer

World Bank

International Monetary fund

Council on foreign Relations

Organization of petroleum exporting countries

Which trade policy results in the government levying both a specific tariff and an advalorem tariff on imported goods.

Choose an answer

Compound tariff

Nominals tariff

Effective tariff

Revenue tariff

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

Choose an answer

Increase ; increase

Increase ; decrease

decrees ; decrease

decrease ;Increase

If the marginal revenue is positive

Choose an answer

Selling another unit will increase total revenue

Selling another unit will increase profits

Selling another unit will increase cost

Selling another unit will increase average revenue

The factor endearment model of international trade was developed by.

Choose an answer

Adam Smith

David Ricardo

John Stuart Mill

Eli Heckscher and Beril Ohlin

The Human Development index is based on.

Choose an answer

Income per capita human capita economic vulnerability

Income per capita, life expectancy education

Income per capita child mortality rates education.

Income per capita life expectancy economic vulnerability

An increase in national income is.

Choose an answer

Likely to increase exports

Likely to decrease savings

Likely to decrease investment

Likely to increase spending on imports

More Classes

Other Links

PPSC Economics Full Book MCQ Test 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

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