PPSC Economics Topic 5 MCQS Test Preparation

Candidates who have done their higher education in the Economics subject and are looking to start their career through PPSC, here we come with the best preparation solution for them. We come with the online PPSC economics tests. These tests are designed by professionals who are familiar with the idea that how examiners arrange the paper for PPSC. Candidates can get a full book test as well as the Topic-wise tests. However, here on this page, the PPSC economics online test of Topic 5th is available.

MCQ's Test For PPSC Economics Topic 5 International Economics

Try The MCQ's Test For PPSC Economics Topic 5 International Economics

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PPSC Economics Topic 5 International Economics

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Question # 1

increase foreign competition tend to.

Question # 2

If the home country government grants a subsidy on a domestically produced good domestic producers lend to.

Question # 3

A tariff that prohibits imports has only

Question # 4

The balance of trade can only worsen if income________ relative to absorption

Question # 5

Direct investment and security purchases are classified as.

Question # 6

The relationship between the exchange rate ad the prices of tradable goods is known as the.

Question # 7

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

Question # 8

The _____ analyzes the income distribution effects of trade in the short run when resources are immobile among industries.

Question # 9

The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is.

Question # 10

All of the following are credit items in the balance of payments except.

Question # 11

The exchange rate is kept the same across geographically separate markets by

Question # 12

A country transactions with the rest of the world are recorded in the

Question # 13

International trade is based on the idea that

Question # 14

The supply of foreign currency tends to be

Question # 15

When all of the debit or credit items in the balance of payments are combined

Question # 16

Absolute advantage is determined by

Question # 17

Wassily Leontief used an input output table in order to test the.

Question # 18

The term of trade is given by theprices.

Question # 19

When one country provides most favored nation status for another if agrees to.

Question # 20

A current account surplus implies that

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PPSC Economics Chapter 5 Important MCQ's

Sr.# Question Answer
1 Which of the following strategies have developing countries not used to deal with the problem of unstable export markets.
A. Multilateral contracts
B. Production and export controls
C. Buffer stock arrangements
D. Tariff rate quotes
2 Multinational corporations
A. Always produce primary goods
B. Always produce manufactured goods
C. Products primary goods or manufactured goods
D. None of the above
3 Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove payments disequilibrium.
A. Dual exchange rates
B. Adjustable pegged exchange rates
C. Managed floating exchange rates
D. Crawling pegged exchange rates.
4 To help developing nations strengthen their international competitive rises many industrial nations have granted non nations udder the .
A. International commodity engravement's program
B. Multilateral contract program
C. Generalized system of preferences program
D. Export led growth program
5 According to the Heckscher - Ohlin model
A. Every one automatically gains from trade
B. The gainers from trade out number the losers from trade
C. The scarce factor necessary gains from trade
D. None of the above
6 If the international terms of trade settle at a level that is between each country's opportunity cost.
A. There is no basis for gainful trade for either country
B. Both countries gain from trade
C. Only one country gains from trade
D. One country gains and the other country loses from trade
7 The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is.
A. Freely fluctuating exchange rates
B. Adjustable pegged exchange rates
C. Managed floating exchange rate.
D. Pegged or fixed exchange rates
8 Exchange rate overshooting often occur because.
A. Domestic prices adjust slowly to shifts in demand
B. Military spending increases during military's confects
C. Elasticities are smaller in the long run than the short run
D. Elasticities are smaller in the short run than the long run.
9 Absolute advantage is determined by
A. Actual difference in labor productivity between countries.
B. Relative difference in labor productivity between countries.
C. Both a and b
D. Neither a nor b
10 Advocates of industrial policy maintain that government should.
A. Purse free trade as a policy that leads to maximum global efficiency
B. Grant subsides to firms offering potential comparative advantage.
C. Provide loans to domestic workers in exporting industries.
D. Increase interest rates on loans made to firms in import competing industries.

Test Questions

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