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

Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as agued rto resource allocation.

Question # 2

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

Question # 3

Which of the following is a component of M1.

Question # 4

International trade forces domestic firms to become more competitive in terms of.

Question # 5

The monetary base is composed of.

Question # 6

Starting from a position where the nation's money demand equals the money supply and its balance of payments is it equilibrium, economic theory suggest that the nation's balance of payments would more into a surplus position if there occurred in the nation a.

Question # 7

With no government and foreign trade sectors savings always equals.

Question # 8

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

Question # 9

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

Question # 10

The bowed shape of the production possibilities curve illustrates

Question # 11

In 25 years Pakistan's Per capital income

Question # 12

All economic model ae based on

Question # 13

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

Question # 14

In a pure market economy which of the following is a function of the price.
i - provide information to sellers and buyers
ii- Provide incentives to sellers and buyers

Question # 15

A decrease in lump sum taxes is an examples of.

Question # 16

If there is a price celling, there will be.

Question # 17

During the last eight years the per capita income in Pakistan has been

Question # 18

If tastes are identical between countries than comparative advantage is determined by

Question # 19

Livestock is

Question # 20

Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is

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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 The supply of foreign currency tends to be
A. upward sloping
B. down ward sloping
C. Vertical
D. any of the above
2 Direct investment and security purchase are classified as.
A. Capital account transactions
B. Current account transactions
C. Unilateral transfer transactions
D. Merchandise trade transactions
3 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
A. an import tariff
B. A tariff rate quota
C. A selective quota
D. A global quota
4 Industrial polices intended to foster comparative advantage for domestic industries could result in the implementation of.
A. Research and development subsidies
B. Loan guarantees
C. Low interest rate loans
D. All of the above
5 Which trade theory contents that a country that initially develops and exports a new product may eventually become an importer of if ,a nd may no longer manufacture the product.
A. Theory of factor endowments
B. Theory of overlapping demands
C. Economies of scale theory
D. Product life cycle theory.
6 The type of business in which an individual has unlimited responsibility for the debts of the organization.
A. Partnership
B. Corporation
C. Monopoly
D. None of these
7 Which of the following the most elastic demand the extra revenue a firm receives from the services of an additional unit of a factor of production.
A. Total revenue
B. Marginal physical product
C. Marginal revenues product
D. Marginal revenue.
8 Disposable incomes is equal to.
A. National income Minus taxes
B. Real GDP
C. National income Minus taxes
D. National income Minus Taxes plus transfers
9 The impact and incidence of sales tax is
A. On the consumer
B. On the seller
C. On the producer
D. None of these
10 If tastes are identical between countries than comparative advantage is determined by
A. Supply conditions only
B. Demand conditions only
C. Supply and demand conditions
D. Can't tell without more information.

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