Question # 1

Which of the following index numbers is an important statistical concept in economic theory.

Choose an answer

Per capita income

Cost of living

Gross National product

Maximum Retail price

Which of the following changes shifts the long run aggregate supply curve to the right.

Choose an answer

A demographic change that increases the labor supply

A decrease in the demand for labor

An increase in consumer confidence

A decrease in taxes

Say's law states that

Choose an answer

Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

A market demand curve can be derived by adding all the individual demand curves

Choose an answer

Vertically

Horizontally

In parallel

Any of the above as long as it is consistent

All of the following are parts of the business cycle except.

Choose an answer

Boom

slump

Recovery

Acceleration

A depreciation of currency occur when

Choose an answer

The value of the currency falls

The value of the currency increases

Inflation falls

The balance of payments improves

Under perfect competition, the price system automatically result in efficient output selection when

Choose an answer

MC = MR

MC = MU

P = ATC

P > AVC

A multinational busniess

Choose an answer

Sells products abroad

Produces in more than one country

Imports from abroad

Sells only domestically

Those who argue in favor of import protection generally give the impression that such restricted trade will

Choose an answer

Decrease the level of national security

Provide benefits to some particular industry

Provides benefits to the entire nation

Not yield welfare losses for the nation

An increase in price causes an increase in total revenue when.

Choose an answer

Demand is elastic

Demand is inelastic

Demand is unit elastic

All of the above are possible

Sample implies

Choose an answer

Survey representation of larger whole

Smaller representation of larger whole

Population representation of a larger whole

Census representation of a larger whole

The regression results indicate that the standard error of estimate is.

Choose an answer

135.94

16.06

28.98

4.27

When planned saving is greater than planned investment.

Choose an answer

Output should increase

Output should decrease

Output should not change

All of the above

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

Choose an answer

Fiscal policy

Monetary policy

Both fiscal policy and monetary policy

Neither fiscal policy nor monetary policy

The liquidity trap occurs when the demand for money

Choose an answer

Is perfectly interest elastic

Is perfectly interest inelastic

Means that an increase in money supply leads to a fall int he interest rate

Means that an increase in the money supply leads to an increase in the interest rate

Policy of nationalization was adopted in the period of.

Choose an answer

Z.A. Bhutto

Nawaz Sharif

Zia ul Haq

All of them

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account.

Choose an answer

Deficit

Surplus

Revaluation

Devaluation

For given government spending and taxation the government budget deficit will grow in __________ and decline in _________

Choose an answer

booms, booms

recession, recession

booms, recessions

recessions, booms

Macro economics deals with

Choose an answer

Only the decisions made by individuals and their results.

Only the decisions made by businesses and their results.

Mostly large scale decisions made by countries and governments, and their results.

Only the decisions made by individuals but not the results.

Which of the following is the government most likely to subsidies.

Choose an answer

Negative externalities

Positive externalities

Monopolies

O ligopojies

Objectivity means basing conclusions on facts without any bias and.

Choose an answer

Pilot study

Paradigm

Value judgment

Concept

Pakistan place in the world area size in ______ number.

Choose an answer

4th

5th

6th

7th

The econometric problem of errors in variables leads to

Choose an answer

Ballasted estimates of regression coefficients.

Autocorrelation

Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.

None of the above

Developing economics usually have

Choose an answer

Low GDP per captia

Low CPI

Large balance of payments surpluses

Large budget surpluses

In monopolistic competition

Choose an answer

Demand is perfectly elastic

Products are homogeneous

Marginal revenue = pirce

The marginal revenue is below the demand curve and diverges

Country A 's GNP is increasing by 3% a year in contrast to its population growth of 2.4% The rate of growth of per capita GNP is.

Choose an answer

3%

0.85

0.6%

2.4%

Ordinal measurement approach was not presented by

Choose an answer

Allen

Hicks

Edge worth

Robbins

Scientific method in the application of valid and reliable research methods.

Choose an answer

Experimental

Survey

Methods

Enquiry

Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock

Choose an answer

Raises it because the future marginal productivity of capital is higher

Lowers it because the future marginal productivity of capital is lower

Raises it because the user cost of capital is now lower

Lowers it because the user cost of capital is now higher

The reduction of the inflation rate is called

Choose an answer

Deflation

Disinflation

Inflation

Reflation

For interior commodities income effect is.

Choose an answer

Zero

Negative

Infinite

Positive

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