Question # 1

The _____ analyzes the income distribution effects of trade in the short run when resources are immobile among industries.

Choose an answer

Stolpher Samuelson theory

Factor endowment theory.

Specific factor theory

Over lapping demand theory

Injection into the circular flow are _________ and _______

Choose an answer

Consumption, investment, exports

Investment exports, transfer payments

Investment government expenditure, exports.

Taxes, exports, transfer payments.

In closed economic model aggregate demand is not sensitive to.

Choose an answer

Interest rates

Exchange rates

Price level

Tax policy

In Islam absolute ownership of property lies only with.

Choose an answer

Government

Owner of the property

Allah

None of these

At level of income and output of 100 in the diagram above

Choose an answer

APC < 1

Equilibrium occurs

Consumption expenditures are equal to 100

MPC > APC

The rate of inflation in 1985 was

Choose an answer

3.67%

8.5%

9.77%

3.2%

The arc income elasticity of demand is approximately

Choose an answer

0.02

1.9

3.3

0.5

a nation with a current account deficit will be

Choose an answer

Lending more money to other nations

Experiencing a surplus in exports of goods and services.

Reducing its indebtedness to other nations

Going further into debt with other nations

Market failure may arise because of.

Choose an answer

Imperfect competition

Taxation

Externalities

All of the above

The concept of carbon credit originated from which one of the following.

Choose an answer

Earth summit rio de jeneiro

Kyoto protocol

Montreal protocol

G-8 summit Helligendamm

A competitive equilibrium is Pareto efficient because.

Choose an answer

Producers are price takers

Consumers and producer's face the same prices

Marginal costs and benefits are equal

All of the above

Money is

Choose an answer

An indicator of the scarcity of wants

Anything that sellers accept i exchange for goods and services.

A form of barter

Anything that the government classifies as a trade commodity.

If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____

Choose an answer

decreases ; right

decreases ; left

Increases ; right

Increase ; left

Applied research is problem oriented and

Choose an answer

Analytical directed

Scientific procedure

Scientific research

Action directed

Monetarists believe that a reduction in _____ can be achieved by reducing.

Choose an answer

Unemployment, prices

Inflation, wages

Unemployment, wages

Inflation, the quantity of nominal money

In a competitive industry each buyer and seller.

Choose an answer

Is a price taker

Produce different products

Believes that can influence price

Prevents the entry of competitors

A person who is made redundant because of the contraction of an industry is a victim of.

Choose an answer

Frictional unemployment

Demand deficient unemployment

Classical unemployment

Structural unemployment

In a command economy

Choose an answer

The price mechanism acts as an incentive

Resources are allocated by market forces

Individual firms make decisions for themselves about what to produce and how to produce it.

The public sector is large

When a tax is levied on a good.

Choose an answer

The market price falls because demand declines.

The market price falls because supply falls.

A wedge is placed between the price buyers pay and the price sellers receive

The market price rises because demand falls.

In perfect price discrimination

Choose an answer

Consumer surplus is maximized

Produce surplus is zero

Community surplus is maximized

Consumer surplus is zero

Which of the following is a stock variable.

Choose an answer

Gross private domestic investment

Personal savings

Both a and b

None of these

The business cycle describes fluctuations in output around the.

Choose an answer

Trend path of output

Boom

Recession

Short run fluctuations in output

Find the change in revenue to the industry due to the taxs.

Choose an answer

Rs. 40 billion

Rs. 34 million

Rs.25 million

Rs.36 Million.

The real value can be derived from a nominal value by

Choose an answer

Adjusting changes over time

Adjusting for data collection errors

Adjusting for population changes

Adjusting for changes in prices

Which of the following is a characteristic of monopolistic competition.

Choose an answer

One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product quality price and marketing

When firms are free is enter and exit the market

In _________ the government replaced the development board with a new autonomous body called the planning board.

Choose an answer

1951

1952

1953

none of the above

According to classical models the level of employment is determined primarily by

Choose an answer

Interest rates

The level of prices

The level of aggregate supply in the economy

The level of aggregate demand for goods and services

The economists who emphasized wage flexibility as a solution for unemployment were.

Choose an answer

Monetarists

New keynesians

Classical economists

Keynesians

A public good will

Choose an answer

Be underprovided in the free market

Be overprovided in the free market

Not be provided in the free market

Has no opportunity cost

If matrix A is matrix of order n x m and B is another matrix of order m x n, then BA will be the matrix of order.

Choose an answer

n x m

m x n

n x n

m x m

A monolithically competitive market is characterized by all of the following except.

Choose an answer

Easy entry

Differentiated product

Excess capacity

Economic profit in the long run

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