PPSC Economics Topic 10 MCQS Test Preparation

Punjab Public Service Commission, PPSC is an organization regulated by the Punjab government to sort out the suitable and deserving candidates for several vacant positions at the Punjab province level. The organization makes sure that the exams are conducted in a peaceful and satisfactory environment. Moreover, the organization also announces the results with complete transparency and helps in the further recruiting process at the provincial level.

MCQ's Test For PPSC Economics Topic 10 Public Finance

Try The MCQ's Test For PPSC Economics Topic 10 Public Finance

  • Total Questions20

  • Time Allowed20

PPSC Economics Topic 10 Public Finance

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Question # 1

The supply of foreign currency tends to be

Question # 2

If the Federal Reserve wishes to increase the money supply it should.

Question # 3

With no government and foreign trade sectors savings always equals.

Question # 4

According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than

Question # 5

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

Question # 6

The earliest statement of the principle of comparative advantage is associated with.

Question # 7

The theory of ___________ suggests that government can assist domestic competitors.

Question # 8

The law of demand states that

Question # 9

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

Question # 10

When unintended investment is positive

Question # 11

A pure number by which change in investment is multiplied to change in income is called

Question # 12

That the division of labor is limited by the size of the market best applies to which explanation of trade.

Question # 13

Devaluation leads to.

Question # 14

The bowed shape of the production possibilities curve illustrates

Question # 15

Suppose that the supply curve of lin is highly inelastic if the demand curve of lin decreases and increases cyclically along the supply curve of lin then in this market the size of the quantity fluctuations will be _____ the size of the price fluctuations.

Question # 16

If a country an imposes an import tariff its welfare can improve if

Question # 17

The warfare effect of a quota depend to a considerable extent upon.

Question # 18

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

Question # 19

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

Question # 20

Which of the following is likely ot be longer for monetary policy that for fiscal policy.

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10th Chapter

PPSC Economics Chapter 10 Test

Here you can prepare PPSC Economics Chapter 10 (Most Frequently Asked Economics MCQS) Test. Click the button for 100% free full practice test.

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PPSC Economics Chapter 10 Important MCQ's

Sr.# Question Answer
1 Negative taxation refers to.
A. Tax rebate
B. Subsidies
C. Tax evasion
D. Tax avoidance
2 "Treating an individual as typical of a group.
A. Pure discrimination
B. statistical discrimination
C. Human capital
D. Specific skills
3 A politician proposes reducing business taxes, a move she says will encourage risk taking entrepreneurship This proposed cut in business taxes is intended to stimulate the economy mainly though.
A. An increase in aggregate supply
B. A decrease in aggregate supply
C. A decrease in aggregate demand
D. An increase in aggregate demand
4 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
5 Non tariff trade barriers could include all of the following except
A. Domestic content laws
B. Government procurement policies.
C. Health , safety and environmental standards
D. Autidumpiing /countervailing duties applied to imports
6 The larger the required reserve ratio the.
A. Smaller is the deposit multiplier
B. Larger is the deposit multitier
C. Larger is the amount of total deposits that can created from a new deposit
D. Larger is the amount of total money that can be created from a withdrawal
7 During the last eight years the per capita income in Pakistan has been
A. Increasing substantially because of decline in population growth
B. Decreasing
C. increasing only marginally
D. Constant
8 A stable equilibrium requires that the marginal propensity to consume is.
A. Less than zero
B. Zero
C. One
D. None of these
9 In order of practice price discrimination which of the following is needed.
A. Some degree of monopoly power
B. An ability to separate the market
C. An ability to prevent reselling
D. All of the above
10 That the division of labor is limited by the size of the market best applies to which explanation of trade.
A. Factor endowment theory
B. Product life cycle theory
C. Economies of scale theory
D. Overlapping demand theory

Test Questions

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