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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
The appropriate expenditure switching policy to correct a balance of payment surplus is.
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Currency revaluation
Currency devaluation
Expansionary monetary policy
Contractionary fiscal policy
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Question # 2
If the price of product X falls and this change increases the demand for product Y then.
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X and Y are complements
X and Y are substitutes
X is an inferior good
Y is an inferior good
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Question # 3
In Vann diagram the universal set is represented by
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Points within a rectangle
Points within a circle
Both a and b
None of these
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Question # 4
One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.
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rise, increases, increases
rise, falls, increases
rise, increases, falls
rise, falls, falls
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Question # 5
The central economic problem in an economy refers to.
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The prevalence of unemployment
To allocate scarce resources between competing uses.
Consumers having less money than they would like
ensure that production costs are converted by sales revenue.
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Question # 6
How much will a speculator invest now if he expects to earn Rs. 144 two years from now assuming the nominal rate of interest is 20%
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Rs.1654.29
Rs.100.00
Rs.94.00
Rs.68.00
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Question # 7
If A and B are symmetric matrix, then AB- BA is.
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Symmetric
Skew symmetric matrix
Idempotent matrix
Orthogonal matrix
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Question # 8
Sales taxes are generally considered to be.
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Proportional taxes
Regressive taxes
Progressive taxes
Indirect taxes
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Question # 9
Whose opinions have revolutionized the scope of macro economics.
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Adam Smith
J.B. Say
J.M. Keynes
All of the above
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Question # 10
When real income increases, other things equal we fan expect the demand for real money holdings to.
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Fall
Not change
Increase
Decrease
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Question # 11
The costs of disinflation would be low if
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Expected inflation falls as inflation falls
Wages and price controls were used
The Phillips curve were nearly horizontal
The Phillips curve adjusted slowly to changes in inflation
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Question # 12
A consumer is said to be in equilibrium when the marginla utility and price of a commodity
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More
Less
Irrelevant
Equal
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Question # 13
The purpose of support price is to.
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Discourage former
Encourage consumer
Discourage consumer
Encourage farmer
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Question # 14
Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will.
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Increase both interest rates and GNP
Reduce both interest rates and GNP
Increase GNP but cause interest rates to tall
Increase interest but cause GNP to fall.
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Question # 15
Which of the following is a patriarchal value.
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Sympthy
Domination
Cooperation
Love
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Question # 16
Government may contribute to inflationary pressure on account of building up large.
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Numbers of employees
Welfare plans
Budget deficits
Expenditure.
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Question # 17
In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.
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Government payments for goods produced by foreign firms
Government payments for goods produced by firms owned by state of local governemnt
Government payments for welfare
All government payments are included in GDP
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Question # 18
A monopoly may be self perpetuating because profits may be used for
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research
Cost saving
Technical advance
All of the above
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Question # 19
An increase in the wage rate.
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Will usually lead to more people employed
Will decrease total earnings if the demand for labour is wage elastic
Is illegal in a free market
Will cause a shift in the demand for labour
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Question # 20
Which of the following does not apply to pareto efficiency.
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Consumptive efficiency
Productional efficiency
Allocative efficiency
Equity
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Question # 21
The effects of inflation on the price competitiveness of a country's products may be offset by
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An appreciation of the currency
A revaluation of the currency
A depreciation of the currency
Lower inflation abroad
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Question # 22
There are three fundamental questions every society must answer Which of the following is one of these questions.
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What goods and services are to be produced.
How are the good and services to be produced.
Who will get the goods and services what are produced.
All of the above
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Question # 23
A change in the full employment quantity of labor_________ the short run aggregate supply curve and ______ the long run aggregate supply curve.
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shifts ; shifts
shifts ; does not shift
does not shift ; shift
does not shift ; does not shift
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Question # 24
If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____
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decreases ; right
decreases ; left
Increases ; right
Increase ; left
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Question # 25
When total utility becomes maximum then marginal utility will be.
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Minimum
Average
Zero
Negative
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Question # 26
The Lorenz curve shows that
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unemployment does not affect social group
People with low income spend more
People with low income spend less
the degree of income equality in the economy
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Question # 27
The demand for a product would be more inelastic.
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The greater is the time under consideration
The greater is the number of substitutes available to buyers
The less expensive is the product in relation to incomes
all of the above.
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Question # 28
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 # 29
In the long run in perfect competitiion
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the price equals the total revenue
Firm are allocatively inefficient
Firms are productively efficient
the price equals total cost
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Question # 30
The term focused group was coined by
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Powel
Merton
Eruest Dichter
Mitchell
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Question # 31
Per Capita income is obtained by dividing National income by
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Total labor Force in the country
Unemployed Youth in the country
Total population of that country
None
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