Question # 1

If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75

Choose an answer

60

200

250

240

Economic growth is shown on the production possibility frontier as.

Choose an answer

The curvature of the PPF

An inward shift in the PPF

An outward shifts in the PPF

A movement from one point on the PPF to another

Which of the following will not result in an increase in the level of income.

Choose an answer

An increase in autonomous spending

A decrease in autonomous taxes

An increase in autonomous transfers

an increased in net tax revenues

The rate of inflation in 1985 was

Choose an answer

3.67%

8.5%

9.77%

3.2%

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______

Choose an answer

rise ; left

rise ; right

fall ; left

fall ; right

What is the refers to any collection of specified group of human beings

Choose an answer

Sampling

Random sampling

Non probability sampling

Population

The equilibrium level of income is.

Choose an answer

Rs. 360

Rs.600

Rs.440

Rs.500

When your grandmother keeps her savings hidden under her mattress she is using money as.

Choose an answer

a standard of deferred panyment

A comfortable thing for sleeping

A medium of exchange

A store of value

Aggregate demand will increase if

Choose an answer

Consumption falls

Investment falls

Exports fall

imports fall

An optimal tariff is one which reduces imports to the level at which ___ equals

Choose an answer

imports , exports

The balance of trade, zero

The demand for currency, the supply of currency

Social marginal cost social marginal benefit

Which among the following is the sensible theory of sampling.

Choose an answer

Induction

Inertia

Regularity

None of the above

Which of the following could be a reason for the problem of lack of jobs being overestimated.

Choose an answer

the existence of disguised unemployment

People are underemployment

People holding only one job

The existence of child labour

Who among the following was the leader of Monetarism

Choose an answer

Keynes

Milton friedman

A.W.Philip

Mankiv

currency speculation is__________ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations.

Choose an answer

Destabilizing

Stabilizing

Inflationary

Deflationary

A Horizontal demand curve for a good could arise because consumers.

Choose an answer

Are irrational

Are not sensitive to price changes

View this good as identical to another good

Have no equivalent substitutes for this good

Which of the following measures is the best measure of money as a medium of exchange.

Choose an answer

M1

M2

M3

None of the above

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.

Choose an answer

the marginal propensity to save

Minus the marginal propensity to save

The marginal propensity to consume

Minus the marginal propensity to consume

General agreement on Tariffs and Trade was established in.

Choose an answer

1948

1949

1950

None of these

The question "What is living? is important in

Choose an answer

Eco centered ethics

Animal centered ethics

Life centered ethics

Human centered ethics

The purpose of making assumptions in economic model building is to.

Choose an answer

Force the model to yield the correct answer

Minimize the amount of work an economist must do

simplify the model while keeping important details.

Express the relationship mathematically.

Th transpose of the cofactor matrix is called.

Choose an answer

Adjoin of the matrix

Power of a matrix

Minor of the matrix

Rank of a matrix

The Marginal cost of product W exhibiting positive externalities is McW = 25 + 5 Qs, the competitive price for each unit of W (Pw) is Rs. 175 and the positive externality is worth Rs. 100 to society for each unit produced. Society considers product W under produced by how many units.

Choose an answer

10 Units

15 Units

20 Units

5 units

Industrial polices intended to foster comparative advantage for domestic industries could result in the implementation of.

Choose an answer

Research and development subsidies

Loan guarantees

Low interest rate loans

All of the above

The point at which the graph cuts the x axis is called.

Choose an answer

x- intercept

y - intercept

slope

None of these

In a simple Keynesian world assume the economy is opiating at a full employment noninflationary level worsening world conditions necessitate additional government spending of Rs.50 billion. What should be the direction of change in taxes and magnitude of change to maintain stable price and full employment equilibrium.

Choose an answer

Increase by Rs.50 billion

Increase by more than Rs. 50 billion

Increase by less than Rs.50 billion.

Decrease by more than Rs.50 billion.

Anti dumping duties applied to imported goods.

Choose an answer

Are abolished by the world Trade Organization

Result in decreases in consumer surplus for domestic households

Are imposed by industrial countries but not developing countries.

Result in lower priced goods for domestic consumers

A market is in equilibrium when

Choose an answer

Ac = P

MC = MR

AC =AR

TC =TR

The downward kinked demand curve facing the individual oligopolistic implies that

Choose an answer

He face price certainlty

Competitors have a tendency to follow price decreases but not price increase

Total revenue remains same if a firm increases price

None of these

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

Choose an answer

Income growth

Unemployment

Money growth

Taxes

The Hecksher Ohlin theory explains comparative advantage as the result of difference in countries.

Choose an answer

Relative abundance of various resources.

Relative costs of labor

Economies of large scale production.

Research and development expenditures.

The 1959 land reforms fixed the celling in the private ownership of land of 500 acres irrigated and ______ acres un irrigated.

Choose an answer

750

800

1000

None of these

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