Question # 1

Theory is a set of systematically related propositions specifying casual relationship among variables is defined by

Choose an answer

Black James and Champaign

P.V. Young

Emory

Gibbes

According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________

Choose an answer

rise ; rise

fall ; rise

rise ; fall

fall ; fall

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

Choose an answer

Raises ; LM; Right

Lowers; IS ; left

raises ; IS; right

Lower ; LM; left

If tastes are identical between countries than comparative advantage is determined by

Choose an answer

Supply conditions only

Demand conditions only

Supply and demand conditions

Can't tell without more information.

Research is directed towards the solution of immediate , specific and practical problem is called.

Choose an answer

Basic

Applied

Diagnostic

Descriptive

If there is a price celling, there will be.

Choose an answer

Shortages

surpluses

Equilibrium

None of these

Which of the following is a determinant of consumption.

Choose an answer

Expectations about future prices

Level of indebtedness of consumers

The price level

All of the above

A negative definite Hessian fulfills the second order conditions for.

Choose an answer

Maximum

Minimum

both maximum and minimum

Mini max

If the State bank of Pakistan wished to pursue a light monetary policy it would.

Choose an answer

Lower the required reserve ratio and the statutory liquidity ratio.

Lower interest rates

Buy government securities on the open market

Sell government securities on the open market

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

Choose an answer

up ; left

up ; right

down ; left

down ; right

The value of the dependent variable where the graph cuts the y-axis is called.

Choose an answer

X - intercept

Y- intercept

Slope

None of these

If there is a price celling which of the following is NOT likely to occur.

Choose an answer

Rationing by first come first served

Black markets

Gray markets

Sellers providing goods for free that were formerly not free

Qara -e- Hasna is normally payable to.

Choose an answer

Needy persons

Poors

Helpless

All of these

If the Nominal GNP of an economy rose from Rs. 5000 to 5500 between 1985 and 1986 while the price index rose from 100 to 110 during the same period real GNP

Choose an answer

Fell by 10% from 1985 to 1986

Rose by 10% from 1985 to 1986

Remained constant from 1985 to 1986

Fell by 1% from 1985 to 1986

An increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the.

Choose an answer

Revenue from value added tax

Level of company profits

Level of unemployment

Average level of wages

Short run is a time frame where a firm can change its.,

Choose an answer

Total cost

Total production

Plant size

None of these

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 economics money refers to

Choose an answer

Income

Wealth

Assets use and accepted an payment

Currency

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

Choose an answer

M1 is larger than M2

The demand for M2 is more stable

M1 includes more liquid assets the M2

None of the above answers is correct.

The socially optimal rate of growth is

Choose an answer

Zero

Negative

Where the marginal social benefit the marginal social cost

total social costs are minimized

A main advantage of specialization results from

Choose an answer

Economics of large scale production

The specializing country behaving as a monoploidy.

smaller production runs resulting in lower unit costs

High wages paid to foreign workers

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

"Income inequality can be high in the free market and should be reduce ".This is an example of what.?

Choose an answer

Judicial economic statement.

Positive economic statement

Formative economic statement

Normative economic statement

Bank create money by

Choose an answer

Printing it

Issuing debit cards

Accepting chequeens

Lending out part of their deposits

A decline in planned investment spending unrelated to the interest rate focuses the equilibrium level of aggregate output to ________ and shifts the _ curve to the _______

Choose an answer

rise; Lm ; RIGHT

RISE ; is; right

fall ; IS; Left

rise ; LM; left

For perfect competition ot work there must be

Choose an answer

Many buyers and sellers

A standard product

Free entry and exit

All of the above

A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.

Choose an answer

Demand ; right

demand ; left

supply ; right

supply ; left

If the demand curve for a good is downward sloping then the good must be.

Choose an answer

Normal

Inferior

Giffen

Either a or b

The mathematical theory of probability has helped to form the.

Choose an answer

Statistical theory

Law of inertia of large numbers

Law of statistical Relativity

Law of statistical Regularity

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

Choose an answer

2.85%

3.175

6.68%

7.55

Profit making is basic motive in.

Choose an answer

Socialism

Mixed economy

Communism

^Capitalism

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