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

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PPSC Economics Topic 10 Public Finance

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Question # 1

According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________

Question # 2

The nominal interest rate is 5% and the inflation rate is 2% the real interest rate is.

Question # 3

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

Question # 4

In oligopoly market seller are.

Question # 5

International trade in goods and services is sometimes used as a substitute for all of the following except.

Question # 6

The exogenous variable in the income equation C +!+G = y is

Question # 7

Accordant the wealth effect , an increase i the price level _______ real wealth and ____ consumption expenditure.

Question # 8

An economy that has achieved full production has achieved

Question # 9

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.

Question # 10

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

Question # 11

A tariff can________ raise a country's welfare.

Question # 12

Of the following which one is a characteristic of monopolistic competition.

Question # 13

In order of practice price discrimination which of the following is needed.

Question # 14

If there is a prices celling, which of the following is NOT likely to occur.

Question # 15

Import substitution is an example of.

Question # 16

Saving means

Question # 17

a nation with a current account deficit will be

Question # 18

The monetary base is composed of.

Question # 19

A depreciation of the dollar will have its most pronounced impact on imports if the demand for. Imports is.

Question # 20

If an economy experience an increase in productivity it means that.

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Economics
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 Which of the following is automatic stabilizer.
A. Unemployment benefits
B. Spending on education
C. Defense spending
D. Net interest
2 A tariff can________ raise a country's welfare.
A. Sometimes
B. Never
C. Always
D. None of these
3 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.
A. Decrease in the money supply
B. Increase in the money supply
C. Decrease in the money demand
D. any of the above
4 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
5 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
6 The impact and incidence of sales tax is
A. On the consumer
B. On the seller
C. On the producer
D. None of these
7 A stable equilibrium requires that the marginal propensity to consume is.
A. Less than zero
B. Zero
C. One
D. None of these
8 Indifference curves shows various combinations of.
A. One commodity
B. Two
C. Three
D. All of these
9 Which of the following would most likely shift the production possibilities curve for a nation outward.
A. A reduction in unemployment
B. An increases in the production of capital goods
C. A reduction in discrimination
D. An increase in the production of consumer goods
10 The term of trade is given by the process.
A. Paid for all goods exported by the home country
B. Received for all goods exported by the home country
C. Received for exports and paid for imports.
D. Of primary product as opposed to manufactured products.

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