Question # 1

Factor that cause the IS curve to shift include.

Choose an answer

Change in autocoups consumer spending

Change in taxes

Change in government spending

All of the above

The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.

Choose an answer

The marginal product of labor is positive

The marginal product of capital is positive

There is diminishing marginal productivity of labor

There is diminishing marginal productivity of capital

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

Choose an answer

increase ; increase

Increase ; decrease

decrease ; decrease

decrease ; increase

The current account includes

Choose an answer

The value of trade in merchandise

Services

Unilateral transfers

All of the above

In the short run, the supply of capital is _______ and in the long run iwll depend on.

Choose an answer

Variable technology

Fixed, expectations

Fixed, rental rate of capital

Variable, interest rates.

Mudaraba business is administered by the Mudaraba companies and Mudaraba rules .

Choose an answer

1990

1980

1981

1978

Net National product equals.

Choose an answer

Gross national product minus indirect business taxes

Gross national product minus depreciation

National income minus indirect business taxes

National income pluses depreciation

Economics assumes that people consume goods and services to achieve.

Choose an answer

Status

Prestige

Utility

Self esteem

In the long run an increase in government purchases of military equipment would cause output to _________ and the aggregate price level to

Choose an answer

Stay constant fall

fall ; fall

fall ; stay constant

stay constant ; rise

In linear consumption function with a positive slope less that on means that if income increase, consumption will.

Choose an answer

Fall

Not change

Fluctuate

Increase

The Philips curve shows the trade off between ________ and _____

Choose an answer

The inflation rate, interest rates

The inflation rate, the unemployment rate

interest rates, output

Output, employment

A statistic in inferential statistics is related to which of the following.

Choose an answer

Sample

Population

Botha a and b

None of these

A country transactions with the rest of the world are recorded in the

Choose an answer

Balance of international indebtedness

Balance of financial transactions

Balance of payments

Income statement

Production of vegetables and fruits is termed as

Choose an answer

Vegetative propagation

Truck forming

Both a and b

None of these

GDP difference between GNP because.

Choose an answer

GDP = GNP - net factor payments from abroad

GNP = GDP -net factor payments from abroad

GDP = GNP -capital consumption allowances

GNP = GDP -capital consumption allowances.

In contract to perfectly competitive markets monopolists

Choose an answer

Do no have to worry about market demand

Sell only if demand is inelastic

Can never incur an economic loss

Can earn an economic profit indefinitely

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift _____ and the equilibrium level of aggregate output to.

Choose an answer

up ; rise

up ; fall

down ;rise

down ; fall

If one car company takes over another car company this is an example of which type of integration.

Choose an answer

Vertical

Horizontal

Conglomerate

Literal

Measure of skewness gives.

Choose an answer

Direction of skewness

Extent of skewness

Both a and b

None of these

An expansionary supply side shock results in.

Choose an answer

An increased real national income

The aggregate supply curve shifting to the left

The aggregate demand curve shifting to the right

The aggregate demand curve shifting to the left

All the UDCs of the world are homogeneous is broad sense and.

Choose an answer

Heterogeneous in narrow sense

Homogenous in narrow sense also

Homogenous in human resources

Homogenous in natural resources

When supply increases in an agricultural market famer's earnings might fall because.

Choose an answer

Supply is price elastic

Demand is price inelastic

the government buys up all the excess production

All output must be sold at a maximum price

Saving means

Choose an answer

Part of income for investment

Income for boarding

Non consumption of income in the current period

None of the above

A decrease 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

Th transpose of the cofactor matrix is called.

Choose an answer

Adjoin of the matrix

Power of a matrix

Minor of the matrix

Rank of a matrix

In Nash equilibrium each player chooses the best strategy.

Choose an answer

Assuming other players move first.

Dominated by the other players

Given the strategies of other players

That is a credible threat

Which of the following is an injection into the economy.

Choose an answer

Investment

Saving

Taxation

Import spending

Which one of the following is the largest sector of Pakistan Economy.

Choose an answer

Agriculture

Banking

Industry

Manufacturing

When a British pound equals Rs. 1.60 and the French France equals Rs. 0.40 the ability to earn infinite profit if it were not the case, implies that the exchange rate would be.

Choose an answer

1 franc = 4 pounds

1 franc = 1 pound

5 franc = 1 pound

None of the above

Which of the following is an automatic stabilizer.

Choose an answer

Unemployment benefits

Spending on education

Defense spending

Net interest

In the calculation of gross domestic product net exports are.

Choose an answer

The sum of merchandise trade and services

The current account plus long term capital

The value of merchandise exports minus imports

Short term capital plus the basic balance

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