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Online Tests
PPSC Economics Chapter 10 Most Frequently Asked Economics MCQS MCQs With Answers
Question # 1
In autarky when a community maximizes its standard of living its production points is.
Choose an answer
Below the production possibility frontier
On the production possibility frontier
Above the production possibility frontier
Can't tell without more information.
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Question # 2
All economic model ae based on
Choose an answer
Realistic assumptions
Assumptions which can never be perfectly realistic
Unrealistic assumptions
None of the above
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Question # 3
International trade during the 19th century was characterized by.
Choose an answer
Extensive barriers to trade
Operation of the gold standard
A small volume of international trade
None of these
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Question # 4
Most commonly referred indicator of inflation is
Choose an answer
Wholesale price index
Retail price index
Consumer price index
Sensitivity price index
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Question # 5
A tax of 20 cents per unit of imported cheese would be an example of a
Choose an answer
Compound tariff
Effective traiff
Ad valorem tariff
Specific tariff
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Question # 6
If saving rate is 12.0% , ICOR value is 3% and population Rate is 2.0% then the Growth Rate would be.
Choose an answer
2.0%
3.65
4.0%
6.0%
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Question # 7
Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costa are called
Choose an answer
deferential actions
Cash transactions,
Arbitrage
Forward transactions
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Question # 8
The nation, that, following currency depreciation, the balance of trade falls for a while before increasing is called a ________ effect.
Choose an answer
Relative price
Elasticity
J- Curve
Pass through
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Question # 9
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.
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Question # 10
In a market system, sellers act in ___________ interest, but thsi leads to behaviors in __________ interest.
Choose an answer
Self, self
Self, society's
Society's' , society's
society's, self
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Question # 11
Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.
Choose an answer
Destabilizing
Stabilizing
Inflationary
Deflationary
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Question # 12
If an economy experience an increase in productivity it means that.
Choose an answer
the level of output has risen
Employees are working harder than before
Output per unit of input has risen
Technical change has taken place
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Question # 13
The impact and incidence of sales tax is
Choose an answer
On the consumer
On the seller
On the producer
None of these
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Question # 14
According the Keynes when the great depression started , the government should have.
Choose an answer
Done nothing
Decreased the money supply
Had a large increase in government spending.
Enacted high tariffs, such as the smoot Hawley tariff
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Question # 15
Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is
Choose an answer
Positive
Negative
Infinite
None of these
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Question # 16
If the autarky price of S were lower in country A than in country B, then if trade were allowed.
Choose an answer
A would likely exports s to B
A would likely import s from B
Neither country would want to trade
None of the above
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Question # 17
Personal inocme is obtained by adding which items to national income
Choose an answer
Govt. transfer payments
Business transfer payments
Both a and b
None of these
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Question # 18
A_______ is an example of a quota where foreigners hold quota licenses.
Choose an answer
Export quota
Embargo
Auction quota
Tariff quota
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Question # 19
According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than
Choose an answer
Average total cost
Average variable cost
Average foxed cost
Marginal cost
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Question # 20
Which of the followings is NOT component of M-2
Choose an answer
Small time deposits
Money market mutual funds
Stocks
Checkable deposits
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Question # 21
A depreciation of the dollar will have its most pronounced impact on imports if the demand for. Imports is.
Choose an answer
Constant
Inelastic
Elastic
Unitary elastic
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