Question # 1

In the long run in perfect competitiion

Choose an answer

the price equals the total revenue

Firm are allocatively inefficient

Firms are productively efficient

the price equals total cost

If average variable cos tis less then marginal cost then certainly.

Choose an answer

Per unit total cost is rising

Per unit total cost is constant

Per unit total cost is falling

Per unit variable cost is rising

An example of discretionary fiscal policy would be.

Choose an answer

The operation of the welfare sate

The operation of the processive federal income tax

A tax cut adopted to stimulate consumption

An interest rate out in plummeted to stimulate consumption

A drop in the price of compact disc shifts the demand curve for prerecord tapes leftward from that you know that compact discs and precorded tapes are.

Choose an answer

Inferior goods

Substitutes

Complements

Normal goods

The equilibrium level of saving is.

Choose an answer

Rs.120

Rs.75

Rs.40

Rs.80

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

Choose an answer

Less than zero

Zero

One

None of these

The marginal rate of tax paid is.

Choose an answer

The total tax paid /total income

Total income/total tax paid

Change in the tax paid/change in income

Change in income/change in tax paid

What is the reason for the necessity of statistics in the field of social sciences.

Choose an answer

Simplification and quantitative approach

Knowledge acquisition and description

Easiness and analytical

all of the above

From a Keynesian perspective business investment will de cline as a result of.

Choose an answer

A fall in the interest rate

A decrease in business taxes

A decline in business expectations

Acceleration of business depreciation

If government spending of Rs. 10 and a lump sum tax of Rs.10 is added, the empirical equation for the new IS curve becomes.

Choose an answer

Y = 285 + 20 I

Y = 270 - 10 i

Y = 285 - 50 i

Y = 210 - o.5 i

Micro economics is the study of.

Choose an answer

Economy on the whole

Large units of the economy

Individual units of the economy

General economics

Who among the following was the leader of Monetarism

Choose an answer

Keynes

Milton friedman

A.W.Philip

Mankiv

The marginal propensity to consume is equal to.

Choose an answer

Total spending /total consumption

total consumption/total income

Change in consumption/change in income

Change in consumption/change in savings

Which of the following would most likely shift the production possibilities curve for a nation outward.

Choose an answer

A reduction in unemployment

An increases in the production of capital goods

A reduction in discrimination

An increase in the production of consumer goods

Un employment Rate is a percentage relation with reference to.

Choose an answer

Total population

Civilian Labour force

employed persons

Unemployed persons

In a less developed country.

Choose an answer

The infrastructure is likely to be good.

Real wages are likely to be high

Unemployment is likely to be low

The primary sector is likely to be significant

If the price of an apple increased from 50 to 60 the quantity demanded will decrease because of.

Choose an answer

The substitution effect only

The income effect only

A change in income

The substitution and income effects.

Sum of squares of the deviations about mean is.

Choose an answer

Maximum

Minimum

zero

one

Equilibrium occurs in a two sector model when

Choose an answer

Saving equals investment.

Consumption plys investment equals the value of putput

Planned saving equals planned investment.

Aggregate spending equals the revenues of the business sector

The set of subsets of a set A is called.

Choose an answer

Power set of A

Complement of A

Both a and b

None of these

If the price of product X falls and this change increases the demand for product Y then.

Choose an answer

X and Y are complements

X and Y are substitutes

X is an inferior good

Y is an inferior good

Indifference curve theory is old wine in new labeled bottle is said by.

Choose an answer

Marshall

Griffin

Ricardo

Allen

Using the Keynesian model , the effect of a decrease in the effective tax rate on capital would be to cause_____ in the real interest rate and __ in output in the long run.

Choose an answer

An increase ; no change

A decrease ; no change

An increase ; an increase

No change ; a decrease

the Zarai Taraqiati Bank Limited is the largest public sector financial development institution Pakistan it was founded in.

Choose an answer

1960

1961

1962

1963

A typical demand curve cannot be

Choose an answer

Rising upwards to the right

A straight line

Concave to origin

Convex to origin

Which of the following IS a function of money.

Choose an answer

Medium of exchange

Store of value

Unit of accounting

All of the above

If a good is normal then the demand curve for that good must be.

Choose an answer

Downward sloping

Upward sloping

Perfectly elastic

Completely inelastic

Union of A and the universal set is

Choose an answer

A

A'

Universal set

None of these

When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.

Choose an answer

Rs.90

Rs.400

Rs.500

Rs.900

In the neoclassical theory of growth a higher saving rate leads to.

Choose an answer

A higher growth rate

A fluctuating growth rate

A lower growth rate

No change in the growth rate

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

Choose an answer

Increase the minimum reserve asset ratio

Sell government securities on the open market

Buy government securities on the open market

Raise interest rates.

More Classes

Other Links

PPSC Economics Full Book MCQ Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer