PPSC Economics Topic 10 Most Frequently Asked Economics MCQS

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PPSC Economics Chapter 10 Important MCQ's

Sr.#	Question	Answer
1	If a country an imposes an import tariff its welfare can improve if	A. The country is a small country's than a larger country. B. Its terms of trade improve enough C. The tariff enhances the welfare of its trading partners D. Its government's tax revenue increase because of the tariff
2	According to factor price equalization theorem the ______ factor should oppose free trade policies in any given country.	A. Abundant B. Scarce C. Neither D. Can't tell without more information
3	The multiplier for a change in social security benefits is equl to the multiplier for a change in the same direction in salaries of Evanston police officers tiems.	A. the marginal propensity to save B. Minus the marginal propensity to save C. The marginal propensity to consume D. Minus the marginal propensity to consume
4	According the Keynes when the great depression started , the government should have.	A. Done nothing B. Decreased the money supply C. Had a large increase in government spending. D. Enacted high tariffs, such as the smoot Hawley tariff
5	In the theory of the firm profit maximization is always synonymous with.	A. Profitability B. Economic profit making C. maximization of the sales revenue D. None of these
6	Of the following which one is a characteristic of monopolistic competition.	A. Standardized product B. Comparatively easy only C. Little non price competition D. None of these
7	the difference between actual and planned expenditure is equal to.	A. X -M B. M- X C. Unplanned inventory change D. Excess reserves of depository institutions.
8	In the home country government grants a subsidy of a domestically produced good domestic producers tend to.	A. Capture the entire subsidy in the form of higher profits B. Increase their level of production C. Reduce wages paid to domestic workers D. Consider the subsidy as an increase in production cost
9	Import substitution is an example of.	A. The principle of comparative advantage B. The principle of absolute advantage C. An outward looking growth strategy D. An inward looking growth strategy
10	In a "Lorenz curve diagram absolute equality in income distribution would appear as.	A. A curved line well bowed out from the diagonal B. A curved line close to the diagonal C. A right angled line D. A diagonal line

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PPSC Economics Topic 10 MCQS Test Preparation

MCQ's Test For PPSC Economics Topic 10 Public Finance

PPSC Economics Topic 10 Public Finance

Which of the following type of taxes is the most regressive.

A supply schedule shows the relations between the quantity supplied of a commodity over a given time and.

In the balcne of payments, travel and tourism are included int he category of.

If the coefficient of income elasticity is negative.

Suppose that the domestic government allows a specific number of goods to be imported each year but it does not spicily from where the product is shipped or who is permitted to import such a trade barrier is known as

If saving rate is 12.0% , ICOR value is 3% and population Rate is 2.0% then the Growth Rate would be.

In order to maximize profits a monopoly company will produce that quantity at which the

In Balance of payments accounting tourism and travel are classified in the

A_______ is an example of a quota where foreigners hold quota licenses.

A tax of 20 cents per unit of imported cheese would be an example of a

Productivity can grow.

The overall Budget Deficit is financed from

Since 1960 the rage of economic growth in the country has been

A stable equilibrium requires that the marginal propensity to consume is.

If a country has linear production possibilities frontier than production is said to be subject to.

Livestock is

A firm can fund an investment from its own sources, the opportunity cost of its investment is

With no government and foreign trade sectors savings always equals.

According to factor price equalization theorem the ______ factor should oppose free trade policies in any given country.

The central economic problem in an economy refers to.

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PPSC Economics Chapter 10 Test

Top Scorers Of PPSC Economics Topic 10 Public Finance MCQ`s Test

PPSC Economics Chapter 10 Important MCQ's

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