Question # 1

Believers in the monetarist rule assert that

Choose an answer

Lags are long and variable

the economy cna be stabilized by automatic mechanisms

The central bank should keep the money supply growth constant

All of the above

The extent of variability is measured by

Choose an answer

Central tendency

Measures of dispersion

Arithmetic mean

Co relation

An increase in aggregate demand is more likely to lead to demand pull inflation if.

Choose an answer

Aggregate supply is perfectly elastic

Aggregate supply is perfectly inelastic

Aggregate supply is unit elastic

Aggregate supply is relatively elastic

Demand for primary products is likely to be

Choose an answer

Very sensitive to price

Price elastic

Unit elastic

Income inelastic

Due to indivisibilities in demand and infrastructure economic development can be achieved.

Choose an answer

Balance growth according to its advocates

Unbalanced growth according to its advocates

Big pus

None of these

In market economics the incentive that draws entrepreneurs into industry is.

Choose an answer

Government bonuses for meeting production quotas

Profit

Government assumption of the risk of failure

Government assistance with making output and pricing decisions

In 25 years Pakistan's Per capital income

Choose an answer

More than doubled

Less than doubled

Did not show more than 70% increase

None of the above

The long run Phillips curve is

Choose an answer

Vertical

Horizontal

Upward sloping

Downward sloping

Friend man's theory of consumption focuses on

Choose an answer

Past income

Current income

Disposable income

Permanent income

Knowledge of the money supply can lead to good predications of nominal GDP only

Choose an answer

If the price level is stable

If the money supply is stable

Over very short periods of time

If the determinants of velocity are known

The marginal propensity to consume in a less Developed Country is likely to be.

Choose an answer

_{Less than 0}

Nearly 0

High

Low

An expansionary supply side shock results in.

Choose an answer

An increased real national income

The aggregate supply curve shifting to the left

The aggregate demand curve shifting to the right

The aggregate demand curve shifting to the left

The allocation of resources is not efficient it

Choose an answer

The marginal cost of production does not equal society marginal benefit

The distribution is inequitable

Economic growth is low

Unemployment is high

An economics variable that moves in the same direction as aggregate economic activity is called.

Choose an answer

Countercyclical

Procyclical

A cyclical

A leading variable

In a perfectly competitive market if firms are earning an economic profit the economic profit.

Choose an answer

Attracts entry by more firms, which lowers the market price

Can be earned both in the short run and long run

Is less than the normal profit

Leads to a decreases in market demand

The fact that the long run Phillips curve is vertical implies that

Choose an answer

Monetary policy can't effect unemployment

Money is neutral in the long run

There is a natural rate of inflation

Money can't affect inflation in the long run

If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from.

Choose an answer

An import subsidy

A quota

Comparative advantage

An export subsidy

A recurring theme in economics is.

Choose an answer

People have unlimited wants in the face of limited resources

There are unlimited resources

Our country is rich, we just don't realize it

People have limited wants in the face of limited resource.

In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.

Choose an answer

IS ;right

IS ;Left

LM ; Left

LM ; Right

Economists tend to judge a model based upon

Choose an answer

the realty of its assumptions

The accuracy of its predications

Its simplicity

Its complexity

Headquarter of IMF is located in.

Choose an answer

Geneva

Washington DC

London

New york

Which of the following products will have an elastic demand.

Choose an answer

Flour

Cloth

Honda city

None of these

Statistics is one of those science which are only indicative of a trend, therefore

Choose an answer

It is probabilistic than deterministic

It is deterministic than probabilistic

a definite data collection method is unnecessary

Data sources should be clear

A nation wishing to reduce its current account deficit would be advised to.

Choose an answer

Engage in more government spending.

Reduce government taxes

Increase private investment spending

Decrease domestic consumption spending

The ratio of debt to GDP will be larger

Choose an answer

The lower the real interest rate

The lower the growth rate of output

The lower the in initial debt ratio

The lower the ratio of the primary deficit to GDP

A depreciation of the dollar willhave its most pronounced impact on imports if the demand for imports is.

Choose an answer

Constant

Inelastic

Elastic

Unitary elastic

Economic theory assumes that people

Choose an answer

Act in greedy and selfish ways, without regard for the welfare of others.

Act without regard for their own interests.

Are not motivated by self interest

Are motivated by self interest but still might be concerned for the welfare of others.

When economists say that a per son is economizing they mean that the person is.

Choose an answer

making choices to gain benefits at lowest possible cost

Making a lot of money

Purchasing goods that are generic cheap or of low quality

Learning how to run a business more effecitively

The opportunity cost of a student is.

Choose an answer

Course fees and rent

A loan from the bank

What the student could have earned in the best job available by not studying.

What the student will earn after graduation.

An increase in total production causes the demand for money to _____ and the interest rate to ______

Choose an answer

Increase ; increase

Increase ; decrease

decrease ; decrease

decrease,; increase

The concept of carbon credit originated from which one of the following.

Choose an answer

Earth summit rio de jeneiro

Kyoto protocol

Montreal protocol

G-8 summit Helligendamm

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