Question # 1

Which market adjusts the quickest in response to shocks to the economy.

Choose an answer

The asset market

The labor market

The goods market

In the macro economy

A function where a variable x can only very in jumps, is often called.

Choose an answer

Non linear functions

Inverse function

Step function

All of above

A monopolist will discontinue production if

Choose an answer

Marginal revenue is less than marginal cost

Marginal revenue is less than average total cost

Marginal revenue is less the average fixed cost

Price is less than average variable cost

Holding all other factors constant consumers demand more of a good the

Choose an answer

Higher its price

Lower its price

Steeper the downward slope of the demand curve

Steeper the upward slope of the demand curve

When an increase in government spending is matched by an equal decrease in government transfers the income level will.

Choose an answer

Stay the same

Increase

Decrease

None of these

The cost of using capital services is the

Choose an answer

wage rate of capital

Interest charges

Marginal capital cost

Rental rate for capital

A competitive equilibrium is described by

Choose an answer

A price only

A quantity only

The excess supply minus the exceess demand.

A price and a quantity

During the financial year 1999-2000 the tax yielding the largest revenue for the Federal Government was.

Choose an answer

Income tax

Value added tax

Excise duty

Customs duty

The accelerator assumes.

Choose an answer

The marginal propensity to consume is constant

The economy is at full employment

There is a constant relationship between net investment and the rate of change of output

The multiplier is constant

Head quarter of general Agreement on Tariffs and trade is located in.

Choose an answer

Geneva

Paris

Vienna

None of these

Using the Keynesian model the effect of an increase in the effective tax rate on capital would be to cause _________ in the real interest rate and ______ in output in the short run.

Choose an answer

A decrease ; a decrease

A decrease ; no change

No change ; a decrease

An increase ; an increase

If input price adjusted very slowly to output prices, the Phillip's curve would be.

Choose an answer

Downward sloping

Vertical or nearly vertical

Upward sloping

Horizontal or nearly horizontal

Why do people keep currency in their pockets when bank deposits pay interest.

Choose an answer

Because banks might steal your money

Because currency is more liquid

Because bank deposits lose value due to inflation

Because bank deposits lose value due to exchange in interest rates.

Objectivity, generality, systematic and quality are the characteristics of.

Choose an answer

Case study

Projective technique

Narrative method

Content analysis

A demand curve shows that relation between price and demand.

Choose an answer

Positive

Negative

Zero

Very strong

Micro economics is the study of.

Choose an answer

Economy on the whole

Large units of the economy

Individual units of the economy

General economics

In _________ the government replaced the development board with a new autonomous body called the planning board.

Choose an answer

1951

1952

1953

none of the above

To help developing nations strengthen their international competitive rises many industrial nations have granted non nations udder the .

Choose an answer

International commodity engravement's program

Multilateral contract program

Generalized system of preferences program

Export led growth program

Which of the following is a function of money

Choose an answer

Medium of exchange

Store of value

Unit of accounting

All of the above

An ethics that treats only humans as morally considerable is called.

Choose an answer

Holism

Eco centrism

Anthropocentrism

None of these

The multiplier is the reciprocal of A

Choose an answer

Marginal propensity to consume

Both MPF and MPS

Marginal propensity to save

None of these

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

The price elasticity of demand is teh same thing as the negative of the

Choose an answer

Slope

Reciprocal of slope

The first derivative of the demand function

Reciprocal of slope times the ratio of price to quantity

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

In the Keynesian cross diagram a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to ______

Choose an answer

up ; rise

up ; fall

down ;rise

down ; fall

A profit maximizing monopolist in two separate markets will

Choose an answer

Charge different price according to elasticity

Charged same price

Charged very high price

Charged very low price

Monetary policy is concerned with influencing.

Choose an answer

The general level of money wages

The level of government expenditure

The price and availability of money

The level of shares on the stock market

Demand for primary products is likely to be

Choose an answer

Very sensitive to price

Price elastic

Unit elastic

Income inelastic

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

Choose an answer

decreases ; rise

decreases ; fall

Increases ; rise

Increase ; fall

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

An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________

Choose an answer

Shift down and to the left be unchanged

Shift down and to the left shift left

Shift up and to the right be unchanged

Shift up and to the right shift left

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