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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
Small nations with more than one major trading partner lend to peg the value of their currencies to.
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gold
silver
a single currency
a basket of currencies
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Question # 2
"Null set is proper subset of all the non nul sets" this statement is.
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Always true
sometimes true
Never true
True subject to some conditions
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Question # 3
Headquarter of IMF is located in.
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Geneva
Washington DC
London
New york
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Question # 4
The prisoners Dilemma Game demonstrates that.
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Players are better off to act independently
Monopoly is better than competition
People will always cheat
Players are better off if they con operate
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Question # 5
Based on the data above , the increase in potential MI would be
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Rs.50 billion
Rs.300 billion
Rs.60 billion
Rs.100 billion
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Question # 6
____________ represents the difference between what consumers have to pay for a product and what they are willing and able to pay.
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Producer surplus
Deadweight surplus
Government surplus
Consumer surplus
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Question # 7
If a monopolist's has only fixed costs and chooses that output at which marginal cost equals price. it will
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Earn positive economic profits
Earn zero economic profits
Incur a loss equal to its variable costs
Incur a loss equal to its fixed costs
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Question # 8
A product will be traded only if the pre trade price difference between the two countries
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Is less than the cost of transporting it between them
is greater than the cost of transporting it between them
Equals the cost of transporting it between them
More information is needed to answer this question
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Question # 9
The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a
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Given rate of inflation
Given expected rate on inflation
Given level of unemployment
Given expected level of unemployment
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Question # 10
Which of the following would decrease aggregate demand.
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Increased consumption
Increasing export revenue
Increased taxation revenue
Increased investment
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Question # 11
The "Law of demand" most directly means that consumers buy
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More of a good the higher their incomes, ceteris paribus.
Less of good the higher its price ceteris paribus
Buy more of a good the less is its supply ceteris paribus
Buy less of a good the greater is its supply ceteris paribus
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Question # 12
While resources and products flow in one direction of the circular flow model what flow the other direction.
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Services
Public goods
Money
Imported goods
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Question # 13
When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.
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Is unrelated to the rate of interest
Is positively related to the rate or interest
Inversely related to the rate of interest
Falls as the rate of interest decreases
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Question # 14
The first step in formulating a problem is.
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Statement of the prblem
Gathering of data
Measurement
Survey
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Question # 15
Aggregate demand without a foreign sector is the sum of.
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c+1
C+G
1+G
C+!+G
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Question # 16
Empirically verifiable observation is
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Values
Theory
Fact
Hypothesis
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Question # 17
The Schumpeterian growth model is based upon
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Inveslors
Capital formation
entrepreneurs
all of these
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Question # 18
If the autarky price of S were lower in country A than in country B, then if trade were allowed.
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A would likely exports s to B
A would likely import s from B
Neither country would want to trade
None of the above
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Question # 19
A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a
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Domestic subsidy
Export subsidy
Import quota
Export quota
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Question # 20
Astory is a starting point of.
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Experimental design
Quantitative research
Scientific method
Narrative method
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Question # 21
Friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but here should be a stable relationship between
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Anticipated inflation and frictional unemployment
Anticipated inflation and cyclical unemployment
Unanticipated inflation and frictional unemployment.
Unanticipated inflation and cyclical unemployment
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Question # 22
A firm that breaks even after all economic costs are paid is earning.
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Economic profit
Accounting profit
Normal profit
Supernormal profit
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Question # 23
Under system fixed exchange rates which of the following policies promotes internal balance for a nation.
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Fiscal policy
Monetary policy
Both fiscal policy and monetary policy
Neither fiscal policy nor monetary policy
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Question # 24
The natural rate of unemployment is generally thought of as the
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Ratio of the frictional unemployment rate to the cyclical unemployment rate.
Sum of fictional unemployment and cyclical unemployment.
Sum of frictional unemployment and structural unemployment.
sum of structural unemployment and cyclical unemployment.
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Question # 25
A typical demand curve cannot be
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Rising upwards to the right
A straight line
Concave to origin
Convex to origin
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Question # 26
Which of the following is not an example of the functions of statistic.
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Average
Intelligence quotient
Diagram
x2 test
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Question # 27
A decrease in the effective tax rate on capital would cause the IS curve to.
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Shift up and to the right
shift down and to the left
Remain unchanged
Remain unchanged if taxes are fully deducible from income otherwise, shift up and to the right
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Question # 28
Through the world government tend o auction quota license to their highest bidder.
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Always
Often
Seldom
Never
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Question # 29
The demand for labor will be more elastic if
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There are few substitutes for labor
There is a shor time under consideration
Labor is a large percent of the total cost of production
The demand for the product is relatively inelastic
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Question # 30
Expansion in international trade is preferable over.
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Foreign aid
Project assistance
Commodity assistance by foreign donors.
None of the above
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Question # 31
Which of the following index numbers is an important statistical concept in economic theory.
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Per capita income
Cost of living
Gross National product
Maximum Retail price
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