PPSC Economics Topic 10 Most Frequently Asked Economics MCQS

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PPSC Economics Chapter 10 Important MCQ's

Sr.#	Question	Answer
1	Those who argue in favor of import protection generally give the impression that such restricted trade will	A. Decrease the level of national security B. Provide benefits to some particular industry C. Provides benefits to the entire nation D. Not yield welfare losses for the nation
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	If the Federal Reserve wishes to increase the money supply it should.	A. Raise the reserve requirement B. Raise the discount rate C. Buy Treasury securities in the open market D. All of the above
4	Monopoly market is characteristics by	A. A large number of sellers B. Only one seller C. Thousand of seller D. All of these
5	Which of the following is often considered to be inconsistent with the notion of perfect competition.	A. Large number of firms B. Free entry C. Complete mobility D. None of these
6	The central bank of a country plays a significant role in her macroeconomics performance by regulating the.	A. Money supply B. Supply credit C. Interest rate D. All of these
7	a nation with a current account deficit will be	A. Lending more money to other nations B. Experiencing a surplus in exports of goods and services. C. Reducing its indebtedness to other nations D. Going further into debt with other nations
8	An Engel curve is based on which one of the following assumptions.	A. Constant prices, very incomes B. Constant price, constant income C. Constant incomes, varying prices D. None of these
9	National Income account of Pakistan have registered GDP & GNP as.	A. GDP = GNP B. GDP < GNP C. GDP > GNP D. GDP / GNP
10	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

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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

If there is a price floor there will be

National Income account of Pakistan have registered GDP & GNP as.

During the 1980's empirical evidence indicates that.

The production function will be affected by changes in the prices of.

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

Why is the law of diminishing marginal returns ture.

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.

The monetary base is composed of.

The goal of a pure market economy is to best meet the desires of

The supply of foreign currency tends to be

A tariff can________ raise a country's welfare.

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

In autarky equilibrium.

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

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

The productivity curve

the theory of overlapping demands predicts that trade in manufactured goods is unimportant by countries with very different .

A change in the full employment quantity of labor_________ the short run aggregate supply curve and ______ the long run aggregate supply curve.

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

The overall Budget Deficit is financed from

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

A change in the full employment quantity of labor___ the short run aggregate supply curve and the long run aggregate supply curve.