Question # 1

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

Monopoly market is characteristics by

Choose an answer

A large number of sellers

Only one seller

Thousand of seller

All of these

__________ is a said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries infavor of member countries.

Choose an answer

Trade creation

Trade diversion

Trade exclusion

Trade distortion

Which of the following is most likely to benefit a debtor.

Choose an answer

Un anticipated deflation

Anticipated deflation

Unanticipated inflation

anticipated inflation

Case studies are not use ful for

Choose an answer

In depth study

Flexible data collection

Generalization

Datives theory

The length of a business cycle would be measured from

Choose an answer

Peak t trough

Trough to peak

Peak to Peak

The slump to the expansion

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

The investment demand curve shifts right ward if

Choose an answer

The real interest rate falls

Savers increase their thriftiness

The expected profit rate increases.

The economy moves into a recession

Fiscal policy refers to the manipulation of government income and expenditure to.

Choose an answer

control the volume and price of money

Limit the rate of increaes in incomes

Effect the value of the dollar on world financial market.

Affect the level of total expenditure output and employment

In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.

Choose an answer

Aggregate consumption

The sum of the receipts of economic resources

The sum of wages rent interest and profit

All of the above

To prevent the external value of the currency from failing the government might

Choose an answer

Reduce interest rates

Sell its own currency

Buy its own currency with foreign reserves

Increase its own spending

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove payments disequilibrium.

Choose an answer

Dual exchange rates

Adjustable pegged exchange rates

Managed floating exchange rates

Crawling pegged exchange rates.

What's the most common way for a central bank to reduce the money supply.

Choose an answer

Collect higher taxes

Sell bonds to the public

Buy bounds from the government

Buy bonds from the public

What does the phrases "there is no such thing as a free lunch'mean"

Choose an answer

Individuals must always pay money for the food the eat.

No restaurant wner will provide food to patrons unless they pay her

Restaurant owners act selfishly

Consumption of any good requires that other goods be given up

As the economy nears full capacity the short run aggregate supply curve

Choose an answer

Stagflation

Structural inflation

Demand side inflation

Supply side inflation

Islam is against

Choose an answer

Miseries

Luxurious spending

a and b

None of these

Who among the following is concerned with deep acology.

Choose an answer

Arne Naes

Warwick fox

Kant

None of these

According to Keynes the exogenous factors like technology increase in population and discovery of new markets are the reasons. of.

Choose an answer

Underemployment

Structural dualism

Low capital formation

Secular stagnation

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

Which of the following statements is true about hypothesis.

Choose an answer

It is an assumption about population value

There are different types of hypothesis

Hypothesis testing is a function of inferential statistics

All of the above

A diagonal matrix whose diagonal elements are equal is called.

Choose an answer

Unit matrix

Singular matrix

Scalar matrix

Non singular matrix

The ABC corporation.

Choose an answer

Is earning a pure economic profit

Should produce zero units of output

Is sustaining an economic loss

Is breaking even

Debt repayment defense spending and general administrative expenditures consume ___ of Pakistan's annual budget.

Choose an answer

60 percent

65 percent

70 percent

80 percent

An economy that has achieved full production has achieved

Choose an answer

Both allocative and productive efficiency

Allocative but not productive efficiency

Productive but not allocative efficiency

Neither allocative nor productive efficiency

Cross -elasticity following commodities is very high

Choose an answer

Compliments

Normal

Goods substitutes

Good compliments

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

A disadvantage of the barter system is that

Choose an answer

No trade occurs

People must produce all their own food clothing and shelter

The opportunity to specialize is greatly reduced.

Gold is the only unit of account

a demand curve can shift because of changing.

Choose an answer

Incomes

Prices of related goods

Testes

All of the above

The asset market approach is most helpful in explaining.

Choose an answer

Why exchange rate remain quite stable

Why government change their money supplies

Long term exchange rate movements

Short term exchange rate movements

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

Choose an answer

fall ; rise

fall ; fall

rise ; rise

rise; fall

An increase in the number of workers hired by a firm could result from

Choose an answer

a decrease in the marginal product of labor

a decrease in the marginal revenue product of labor

An increase in the real wage

A decrease in the real wage

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