Question # 1

Aggregate demand refers to the total demand for all domestically produced goods and services in an economy generated from.

Choose an answer

The household and government sectors

The household sector

All sectors except the rest of the world

All sectors including the rest of the world.

Over time the price of primary products tends to fall because.

Choose an answer

Demand is income elastic

Supply is income elastic

Of outward shifts in supply

Demand is price elastic

Marginal utility is equal to average utility at that time when average utility is.

Choose an answer

Increasing

Maximum

Falling

Minimum

The view that human beings are above of outside of nature as a source of value to known as.

Choose an answer

Eco cetrism

Authropocentrum

Holism

Bio centrisim

In Islam absolute ownership of property lies only with.

Choose an answer

Government

Owner of the property

Allah

None of these

The marginal rate of tax paid is.

Choose an answer

The total tax paid /total income

Total income/total tax paid

Change in the tax paid/change in income

Change in income/change in tax paid

A monopsony is

Choose an answer

The scale supplier of an input

The scale supplier of an output

The sole buyer of some type of input

A unionized industry

In the short term a firm will produce provided the revenue

Choose an answer

Covers fixed costs

Covers variable costs

Covers total costs

Covers revenue

To maximize revenue, an excise tax should be imposed on a product

Choose an answer

That has a highly elastic demand curve

Such as St. Joseph's children's' aspirin.

Such as salt

such as Toyota automobiles

If the price of automobile were to decrease substantially the demand curve for automobiles would most likely.

Choose an answer

shift rightward

Shift left eard

Remain unchanged

Become steeper

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firm in the market we have

Choose an answer

A cartel

The perfect competitive outcome

The Nash equilibrium

Monopolistic competiton

The price mechanism does not act as a

Choose an answer

Signal

Incentive

Rationing device

Indicator of income

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

According to Keynesians the primary source of business cycle fluctuation is.

Choose an answer

Aggregate demand shocks

Productivity shocks

Oil price shocks

Consumer confidence shocks

The use of money is more efficient than barter because the introduction of money

Choose an answer

Reduces the need for economic specialization

Reduces the need to exchange goods

Reduce the need for other stores of value

Reduces transaction costs

Factors that cause the IS curve to shift include.

Choose an answer

Changes in autonomous consumer spending

Changes in government spending

Changes in investment spending related to business confidence

All of the above

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

Choose an answer

Overestimates inflation

Underestimates inflation

Is an erratic estimate of inflation

Remain an accurate estimate of inflation.

Why does it make sense in assume that people are rational, if you want to predict their behavior.

Choose an answer

People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

Classical economics think general equilibrium is attained relatively quickly because.

Choose an answer

The real interest rate adjusts quickly

The level of output adjusts quickly.

The real wage rate adjusts quickly

The price level adjusts quickly.

Resources in an economy

Choose an answer

Are always fixed

Can never decrease

Always increase over time

Are limited at any moment in time

Hirschman along with other ebonists consider that for economic development.

Choose an answer

Balance growth is necessary

Unbalance growth is necessary

Big push in investment is necessary

Industrial development is necessary

Absence of representatives are special feature of.

Choose an answer

Research

Content analysis

Narrative method

Case study

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

Choose an answer

decreases ; rise

decreases ; fall

increases ; rise

increases ; fall

When the period of Kharif crops start and when it end.

Choose an answer

October - May

January -October

May -October

June - September

Which theory is generally included under micro economics.

Choose an answer

Price theory

Income theory

Employment theory

None of the above

Which stage guides from the planning stage to the stag of drawing of final conclusions.

Choose an answer

Numerical facts

Statistical methods

Data

None of the above

Total factor productivity growth is that part of economic growth due to.

Choose an answer

Capital growth plus labor growth

Capital growth less labor growth

Capital growth times labor growth

Neither capital growth nor labor growth

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

Choose an answer

Net exports LM right

Net exports LM left

Money demand IS right

Money demand LM left

Exchange rates that are determined by the unregulated forces of supply and demand are.

Choose an answer

Floating exchange rates

Pegged exchange rates

Fixed exchange rate

Managed exchange rates

The function y = 2x + 1 and x = 1/2 y - 1/2 are said to be.

Choose an answer

Non linear functions

Inverse functions

Step functions

All the above

If the price of automobiles were to increase substantially the demand curve for gasoline would most likely

Choose an answer

Shift leftward

Shift right ward

Become flatter

Become steeper

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