Question # 1

The demand curve for labor for a monopolist when other inputs are fixed is equal to its

Choose an answer

Marginal value product curve

Marginal revenue product curve

Horizontal summation of the firms demand curve at different output prices

Marginal physical product curve

Which of the following macro economic variables is the most seasonally pro cyclical.

Choose an answer

Expenditure on services

The unemployment rate

Expenditure on durable goods

The real wage

What is the share of rural population in the total population of Pakistan.

Choose an answer

61.8 %

67.5%

59.6%

74.8%

The equilibrium inflation rate is determine by the intersection of __________ and ___

Choose an answer

demand, supply

IS , LM

AD, AS

Labour demand, labour supply

In the classical model of Ricardo the direction of trade is determined by

Choose an answer

Absolute advantage

Comparative advantage

Physical advantage

Which way the wind blows

The standard of living is often measured by

Choose an answer

Real GDP per capita

Real GDP

Real GDP * Population

Real GDP Plus depreciation

When unintended investment is positive

Choose an answer

Output tends to rise

Output tends to fall

Output is in equilibrium

None of these

An elasticity coefficient of -1 means that

Choose an answer

The demand curve is perfectly inelastic

The demand curve is parfectly elastic

The relative changes in price and quantity are equal

Expenditures on the good would increase if price were reduced.

A straight line downward sloping demand curve implies that as price falls the elasticity of demand.

Choose an answer

Increases

Decreases

Remain the same

None of these

A tariff that probibits imports ahs only

Choose an answer

A revenue effect and redislnbution effect

Revenue effect and protection effect

Consumption effect and production effect

Redistribution effect and consumption effect

The main cause of cyclical unemployment is that.

Choose an answer

Firms engage in race gender and sex discrimination in their hiring practices.

Some induvial do not have marketable job skills.

the level of overall economic activity fluctuates

Workers offer voluntarily quit a job to look for a better job.

The firms average variable cost of the 150th unit is.

Choose an answer

Rs.15

Rs.17

Rs.20

Rs.9

A demand curve shows that relation between price and demand.

Choose an answer

Positive

Negative

Zero

Very strong

Which industrialization policy has developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation.

Choose an answer

Export promotion

Import substitution

International commodity agreements

Multilateral contrracts.

An increase in the discount rate at the FED generally has the following effect on bond prices.

Choose an answer

There is no demonstrated effect

Such an increase tends to lower bond prices.

Such an increase tends to raise bond prices

Bond prices are related to the government purchase and sale of bonds.

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

In closed economic model aggregate demand is not sensitive to.

Choose an answer

Interest rates

Exchange rates

Price level

Tax policy

The multiplier which specifically refers to an equal increase in government spending and taxes, giving rise to that same equal increase in national income is called.

Choose an answer

the Keynesian multiplier

The balanced budget multiplier

the deficit multiplier

None of the above

Fact is empirically verifiable observation is defined by

Choose an answer

Good and Halt

Claver

P.V.Young

Emory

If sales are forecasted using an adaptive expectations model where the coefficient of adjustment .2, the sales forecast for 1986 is.

Choose an answer

Rs.260

Rs.244.4

Rs.3.6

Rs.283.6

Object of case study is to.

Choose an answer

Gueralise theory

Datives theory

Expand theory

Flexible data collection

If a good has a lot of substitutes, then its demand is.

Choose an answer

Elastic

Inelastic

Unit elastic

Elastic or inelastic depending on whether the price is increasing or decreasing

The overall Budget Deficit is financed from

Choose an answer

External borrowing

Non bank borrowing domestically

Bank borrowing plus the above two at a and b

None of the above

An increase in interest rates.

Choose an answer

Is likely to reduce savings

Is likely to reduce the external value of the currency

Leads to a shift in the MEC schedule

Leads to a movement along the MEC schedule

Medieval scholastics, early Islamic thinkers, and Aristotie all agreed that.

Choose an answer

Payments of interest should be prohibited.

Commerce was modeled on a circular flow

Surpluses are enhanced throgh skilled management.

All of the above

Changes in subjective or objective factors.

Choose an answer

Never affect the consumption function

Always cause downward shifts of the consumption function

Always cause upward shifts of the consumption function

May cause upward or downward shifts of the consumption function

In the long run a profit maximizing monopoly produces an output volume that

Choose an answer

Equates long run marginal cost with marginal revenue

Equates long run average revenue

Assures permanent positive profit

Is correctly described by both a and c

An increase in the real wage rate will cause.

Choose an answer

The labor demand curve to shift to the right

The labor demand curve to shift to the left

The quantity of labor demanded to rise

A movement along the labor demand curve

The open type of questionnaire calls for a free response in the respondent's

Choose an answer

Own words

Observation

Facts

Data

import substitution is the replacement of ________ by domestic production under the protection of.

Choose an answer

exports, subsidies

Exports, patents

imports, high tariffs or import quotes

Imports, subsidies

Normative economics form ______ based on.

Choose an answer

Positive statements facts

Opinions, personal values

Positive statements values

Opinions facts

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