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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
In the ISLM frame work an expansionary fiscal policy causes aggregate output to _________ and the interest rate to.
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increases ; increase
increases ; decrease
decreases ; decreases
decreases ; increses
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Question # 2
The gift exchange motive suggests that
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Workers value benefits like health insurance more than job security
Workers prefer a nice work environment even if they must accept lower wages.
Workers who feel well treated will work harder and more efficiently
Workers will shirk if they are paid a low wage
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Question # 3
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 # 4
From a Keynesian perspective business investment will de cline as a result of.
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A fall in the interest rate
A decrease in business taxes
A decline in business expectations
Acceleration of business depreciation
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Question # 5
Similar to import tariffs import quotas tend to result in.
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Higher prices ad reduced imports
Increased government revenue
Increases consumer surplus
Decreased producer surplus
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Question # 6
In 1950's liberal policy was adopted regarding.
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Export
Imports
Both
Non
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Question # 7
The price elasticity of demand measures
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The responsiveness of quantity demanded to a change in prie.
How far a demand curve shifts
A change in price
A change in quantity demanded
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Question # 8
To ensure that the fundamental identity of national income accounting holds changes in inventories are.
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Ignored
Counted as consumption
Treated as part of saving
Treated as part of expenditure
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Question # 9
According to the cost based definition of dumping occurs when a firm sells a product abroad at a price that is less than
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Average total cost
Average variable cost
Average fixed cost
Marginal cost
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Question # 10
Market is called father of economics
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Marshall
Robbins
Keynes
Friedman
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Question # 11
In the short run if price falls the firm will respond by
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Shutting down
Equating average variable cost to marginal revenue
Reducing output along its marginal cost curve as long as marginal revenue exceed average variable cost
None of the above
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Question # 12
State monopoly was greatly imposed in the period of.
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Nawaz Sharif
Z.A.Bhutto
Zia ul Haq
None of these
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Question # 13
If desired spending in the economy exceeds income we would expect.
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House hold to save more
Firm to produce less
Firms is produce more
the MPC to change
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Question # 14
Disposable income is.
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Income less taxes
Income less direct taxes
income less indirect taxes
All of these
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Question # 15
When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market we have.
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A cartel
The perfect competitive outcome
The Nash equilibrium
Monopolistic competition
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Question # 16
A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______
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decreases ; rise
decreases ; fall
Increases ; rise
Increase ; fall
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Question # 17
The accelerator theory of investment says that induced investments determined by.
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The rate of change of national income
Expectations
The level of national income
The level of aggregate demand
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Question # 18
The mathematical theory of probability has helped to form the.
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Statistical theory
Law of inertia of large numbers
Law of statistical Relativity
Law of statistical Regularity
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Question # 19
In the balance of payments, travel and tourism are included in the category of
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unilateral transfers
Capital account
Merchandise account
Services account
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Question # 20
Which of the following changes shifts the AD curve up and to the right.
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A rise in the nominal money supply
An increase in income taxes
An increase in the risk on nonmonetary assets
A decreasing the future marginal productivity of capital.
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Question # 21
Quantitative characteristics includes.
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Beauty
Emotion
Intelligence
Data
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Question # 22
Which one of the following is the largest sector of Pakistan Economy.
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Agriculture
Banking
Industry
Manufacturing
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Question # 23
If an economy is productively efficient.
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Everyone is wealthy
Resources are unemployed
More of one product can only be produced if less of another product is produced.
The distribution of income is equal
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Question # 24
The theory of Ruler -urben migraines presented by.
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W.W. Roslow
M.P.Todaro
Simon Kuznets
Nukse
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Question # 25
Elasticity of demand of luxurious goods is always more elastic
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More elastic
Less elastic
Equal elastic
None elastic
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Question # 26
The theory of ___________ suggests that government can assist domestic companies in capturing economic profits from foreign competitors
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International dumping
Countervailing duties
Strategic trade policy
Export promotion policy
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Question # 27
In the labor market if the government imposes a minimum wage that is below the equilibrium wage then.
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Workers who wish to work at the minimum wage will have a difficult time finding jobs.
Firms will hire fewer workers than without the minimum wage law.
Some workers may lose their jobs as a result
Nothing will happen to the wage rate or employment
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Question # 28
The equilibrium price clears the market it is the price at which.
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Everything is sold
Buyers spend all their money
Excess demand is zero
c and d
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Question # 29
Statistics should be capable of.
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Empiricism
systematic inquiry
Comparison
Evolution
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Question # 30
The law of demand states that.
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As the quantity demanded rises, the price rises.
As the price rises the quantity demanded rises
As the price rises, the quantity demanded falls.
As supply rises, the demand rises.
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Question # 31
Secondary activities
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Services
Production
Raw materials
All of these
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