Question # 1

Alfred Marshall formalized and then popularized the analytical technique known as

Choose an answer

General equilibrium analysis

Felicific calculus

Partial equilibrium analysis

Differential equations

Which of the following is not likely to be a government objective.

Choose an answer

Increasing employment

Increasing economic growth

Increasing government spending

Increasing the level of exports

Occupational immobility of labour occurs if.

Choose an answer

People lack information

People do not want to work

People do not have the right skills to work

People cannot afford to move location

When the central Bank ________ the money supply the LM curve shifts to the _______ interest rates ____________ and equilibrium aggregate output.

Choose an answer

Increase ; right ; fall; increase

increases ; left ; rise ; decrease

decreases ; left ;rise ; increases

decreases ; left ; fall ; increases

An invention that speeds up the internet is an example of.

Choose an answer

An income effect

An increase in labor

A substitution effect

A supply shock

Disposable incomes is equal to.

Choose an answer

National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

In monopoly in long run equilibrium.

Choose an answer

The firm is productively effieient

The firm is allocatively inefficient

The firm produces where marginal cost is less than marginal revenue

The firm produces at the sociality optimal level

The earliest statement of the principle of comparative advantage is associated with.

Choose an answer

Adam Smith

David Ricardo

Eli Heckshcer

Berti Ohlin

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

After a temporary beneficial supply shock hits the economy general equilibrium is restored by

Choose an answer

A shift down and to the left of the IS curve

A shift to the left of the FE line

A shift up and to the left to the LM curve

A shift down and to the right of the LM curve

Which of the following changes shifts the AD curve down and to the left.

Choose an answer

A temporary increase in government purchases.

A rise in the nominal money supply

A decrease in corporate taxes

A decrease in consumer confidence

(A+B) + C =a +(B+C) This law of matrices is known as.

Choose an answer

Cumulative law

Associative law

Distributive law

Identity law

If the federal reserve whishes to increase the money supply, it should

Choose an answer

Raise the reserve requirement

Raise the discount rate

Buy Treasury securities in the open the market

All of the above

Import quotas tend to result in all of the following except.

Choose an answer

Domestic producers of the imported good being harmed

Domestic consumers of the imported good being harmed

Prices increasing in the importing country

Price failing in the exporting country.

As a result of the increase in government expenditures disposable income increases by.

Choose an answer

Rs.10 billion

Rs.9 billion

Rs.20 billion

Rs.5 billion

If marginal revenue equals marginal cost

Choose an answer

No profit is being made

total revenue equals total cost

Profits are maximized

Producing another unit would increase profits

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

The elements in the Horizontal line in a matrix is called.

Choose an answer

Columns

Rows

Elements

Diagonal

____________ represents the difference between what consumers have to pay for a product and what they are willing and able to pay.

Choose an answer

Producer surplus

Deadweight surplus

Government surplus

Consumer surplus

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

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

In monopoly when abnormal profits are made.

Choose an answer

The prize set is greater than the marginal cost

The price is less than the average cost

The average revenue equals the marginal cost

Revenue wquals total cost

The demand curve of unitary elastic commodity is.

Choose an answer

Rectangular hyperbola

Parabola

Straight line

None of these

If the fprice in a market is fixed by the government below equilibrium.

Choose an answer

There is excess equilibrium

There is excess supply

There is excess demand

There is equilibrium

When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.

Choose an answer

more ; iincreases

less ; increases

more ; decreases

more ; increases

Logical rezoning process consists of induction and

Choose an answer

Generalization

Deduction

Verifiability

Observation

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

Choose an answer

increase ; increase

Increase ; decrease

decrease ; decrease

decrease ; increase

Which of the following represents monetary policy geared to increases the supply of money.

Choose an answer

The purchase of bonds by the Federal Reserve Bank

The sale of bonds by the Central Bank

An increase in reserve requirement

A decrease in taxes

If the central bank prints more 10 billion and spends them then as a direct result of this action.

Choose an answer

M1 and M2 both increases

Neighed M1 nor M2 increase

M1 increase but M2 does not

M2 increased but M1 does not.

Who among the following is concerned with deep acology.

Choose an answer

Arne Naes

Warwick fox

Kant

None of these

In the circular flow we would expect leakages to __________ injections.

Choose an answer

equal

be less than

by greater than

Be less or greater than

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