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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
To maximize revenue, an excise tax should be imposed on a product
Choose an answer
That has a highly elastic demand curve
Such as St. Joseph's children's' aspirin.
Such as salt
such as Toyota automobiles
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Question # 2
Cross -elasticity following commodities is very high
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Compliments
Normal
Goods substitutes
Good compliments
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Question # 3
When the price of foreign currency the exchange is above the equilibrium level.
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an excess supply of that currency exists in the foreign exchange market.
an excess demand for that currency exists in the foreign exchange market
The supply of foreign exchange shifts outward to the right
the supply of foreign exchange shifts backward to the left
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Question # 4
Perfect competition implies
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Homogeneous goods
Inferior goods
Superiors goods
Differential goods
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Question # 5
Demand for primary products is likely to be
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Very sensitive to price
Price elastic
Unit elastic
Income inelastic
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Question # 6
An expenditure increasing policy would consist of an increase in
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Import tariffs
Import quotas
Governmental taxes
The money supply
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Question # 7
To maximize sales revenue a firm should produce where
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Marginal cost is zero
Marginal revenue is maximized
Marginal revenue is zero
Marginal revenue equals marginal cost
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Question # 8
A demand curve is not related to
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The time period
The price of the commodity
The price of substitution
Any of above
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Question # 9
Tax and rulers duty and terms of trade are discussed in.
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Kitab ul Anwal
ammali
Kitab Ul Asar
Kitab ul Khiraj
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Question # 10
Following is the major source for a country to meet the deficiency of capital
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Domestic saving
Foreign aid
Domestic barrowing
All of these
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Question # 11
When the economy goes into are cession there's an increase in.
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Frictional unemployment
structural unemployment
Cyclical unemployment
Voluntary unemployment
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Question # 12
Forced labor is one of the greatest injustice in the world according to.
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Imam Abu Yousaf
Imam Abu Qasim
Khalil Jabran
Ibn e Khaldun
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Question # 13
If the price elasticity of demand for a non giffen good is inelastic are decreased in its price result in.
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Increase in demand
Decrease in demand
Increase in total revenue
Decrease in total revenue
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Question # 14
When the demand curve is vertical its shows that the demand is.
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Less elastic
Very high elastic
Elastic
Perfectly inelastic
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Question # 15
The earliest statement of the principle of comparative advantage is associated with.
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Adam Smith
David Ricardo
Eli Heckshcer
Berti Ohlin
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Question # 16
Which of the following measures is the best measure of money as a medium of exchange.
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M1
M2
M3
None of the above
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Question # 17
The world narrative derived from Latin verb
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Quantitative research
Qualitative research
Descriptive research
Experimental
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Question # 18
The investment demand curve shifts right ward if
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The real interest rate falls
Savers increase their thriftiness
The expected profit rate increases.
The economy moves into a recession
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Question # 19
If the price of an apple increases.
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Its opportunity cost decreases
Its opportunity cost increases
The substitution effect does not occur
The income effect does not occur
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Question # 20
If the demand curve for a good is horizontal and the price is positive then a leftward shift of the supply curve results in.
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a price of zero
An increase in price
A decrease in price
No change in price
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Question # 21
If firms join together to set prices and quantities this is known as what.
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Interaction
Conglomerate
Collusion
Integration
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Question # 22
Fiscal policy is weak under floating exchange rates as fiscal expansion.
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Crowds out imports
Crowds out public consumption
Crowds out exports
Reduces the budget deficit
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Question # 23
In the short term a firm will produce provided the revenue
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Covers fixed costs
Covers variable costs
Covers total costs
Covers revenue
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Question # 24
The idea that the natural rate of unemployment rises when the acual rate of unemployment rise is known s.
Choose an answer
Stabilization
Insider outsider theory
Hysteresis
an efficiency wage model
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Question # 25
The oldest basis of existence all over the world was.
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Fishing
Farming
Both a and b
None of these
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Question # 26
The long run aggregate supply curve
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Is vertical
slopes upward
Is horizontal
Slopes downward
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Question # 27
Increasing the government budget deficit.
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Increases output in the long run
Decreases output in the short run
Decreases output in the long run.
Decreases the interest rate in the medium run.
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Question # 28
Union of A with A, that is A U A.
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Complement of A
A itself
Con not be determined
None of these
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Question # 29
The movement to free international trade is most likely to generate short term unemployment in which industries'.
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Industries in which there are neither imports nor exports
Import competing industries.
Industries that sell to domestic and foreign buyers
Industries that sell to only foreign buyers
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Question # 30
Trade based on comparative advantage assures that.
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Only the strongest suvrive
Some people are rich and others are poor
Each item is produced using the least amount of time needed to produce it
Each item is produced at as low a cost possible in terms of other things given up
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