Question # 1

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely

Choose an answer

Increase

Not change

Decrease

Shift

Real business cycle theorists argue that ___________ can explain short and long term fluctuations in output.

Choose an answer

Imperfect labour markets

Rational expectations

Intertemporal decisions of households firms and government.

Sun spot cycles

Which of the following would qualify as an aggregate demand shocks.

Choose an answer

An unexpected increase in oil prices

A seasonally expected increase in oil prices

An unexpected reduction in consumer confidence

an anticipated tax cut

The role of _________ is to direct one nation's savings into investments of another nation

Choose an answer

Merchandise trade flows

Service flows

Current account flows

Capital flows

Which of the following is a component of M1.

Choose an answer

Saving deposit

Credit card

Checkable deposit

Gold

If each element of a raw of column of a square matrix A is zero, then the value of the determinant. is.

Choose an answer

Equal

One

Zero

None of these

Data that are verbal or other symbolic materials.

Choose an answer

Quantitate

Qualitative

Primary

Secondary

In a typical cartel agreement the cartel maximizes profit when it.

Choose an answer

Behaves like a monopoly

Behaves like a perfectly competitive firm

Behaves like a duopoly

Is flexible in enforcing production targets

The long run Phillips curve is

Choose an answer

Vertical

Horizontal

Upward sloping

Downward sloping

Head quarter of World Economic forum is situated in

Choose an answer

Devos

London

Geneva

New York

An efficient economy is an economy

Choose an answer

In which output is steady or growing and there is low inflation

That produces what consumers demand and does so at the least possible cost.

that distributes output equally among all consumers

In which there is a fair distribution of wealth.

Which of the following would decrease aggregate demand.

Choose an answer

Increased consumption

Increasing export revenue

Increased taxation revenue

Increased investment

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

Choose an answer

right ; left

right ; right

left ; left

left ; right

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

Choose an answer

Rs.2000

Rs.1400

Rs.1000

Rs.750

If I keep some money available in case I see a bargain this is an example of.

Choose an answer

Asset demand for money

Transactions demand for money

Token demand for money

Precautionary demand for money

According to Islamic economic system the producers can earn.

Choose an answer

Normal loss only

Normal profit only

Abnormal loss

Abnormal profit

International trade is based on the idea that

Choose an answer

Exports should exceed imports

Imports should exceed exports

Resources are more mobile internationally than are goods

Resources are less mobile internationally than are goods

A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.

Choose an answer

fall ;LM; right

fall ;IS; Left

fall ;LM; Left

rise ;LM; Rifht

Which exchange rate system does not require monetary reserves for official exchange rate intervention.

Choose an answer

Floating exchange rates

Pegged exchange rates

Managed floating exchange rates

Dual exchange rates

In the neighborhood of the long run equilibrium of a monopolistically competitive firm average cost will be.

Choose an answer

Decreasing

Constant

Increasing

At a minimum

If the rate of growth of a full employment labor forc eis 1.55 and 2.55 then the celling rate of growth of real GNP, according to Hick's theory of a constrained business cycle,is.

Choose an answer

1.5 %

2.55

4.0%

1.7%

Inflation.

Choose an answer

Reduces the cost of living

Reduces the standard of living

Reduce the price of products

Reduces the purchasing power of a price

Compared to the case of perfect competition, a monopolist is more likely to

Choose an answer

Charge a higher price

Produce a lower quantity of the product

Make a greater amount of economic profit

All of the above

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

Choose an answer

To eliminate seignior age

To allow open market operations

To enhance the credibility of monetary policy.

None of the above

if two sets do not have any common element, then they are called.

Choose an answer

Complement sets

Joint sets

Disjoint sets

None of these

The larger the required reserve ratio the.

Choose an answer

Smaller is the deposit multiplier

Larger is the deposit multitier

Larger is the amount of total deposits that can created from a new deposit

Larger is the amount of total money that can be created from a withdrawal

The expected profit from the profit distribution above is.

Choose an answer

40 units

60 units

100 units

20 units

You move some of your savings account balance into your checking account.

Choose an answer

M2 falls and M1 rises

M1 falls and M2 rises

M1 and M2 are unchanged

M1 rises and M2 remains unchanged

Census is held in Pakistan after every ___ year

Choose an answer

5

10

15

20

Scarcity means that

Choose an answer

We cannot have everything that we might want

We have to make choices between the things we desire.

There are costs to just about any activity we undertake

We must give up some thing in order to obtain other things.

All of the above are correct

That the division of labor is limited by the size of the market best applies to which explanation of trade.

Choose an answer

Factor endowment theory

Product life cycle theory

Economies of scale theory

Overlapping demand theory

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