Question # 1

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

Choose an answer

slopes upward

Sloped downward

Is vertical

Is horizontal

If A and B are symmetric matrices, then A +B is

Choose an answer

Symmetric

Non symmetric

Skew symmetric

Non skew symmetric

A multinational busniess

Choose an answer

Sells products abroad

Produces in more than one country

Imports from abroad

Sells only domestically

An increases 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

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

Choose an answer

Rs.3.5 billion

Rs.1.5 billion

Rs. 4.9 billion

Rs.2.8 billion

The key feature of oligopoly is.

Choose an answer

Excess capacity

High profitability

Product differentiation

Interdependence of firms

Fiscal defect in the budget means.

Choose an answer

Revenue Deficit plus the net borrowings of the government.

Budgetary deficit plus the net borrowings of the government

Capital deficit plus revenue deficit

Primacy deficit minus capital deficit

Government policies that focus on increasing production rather than demand are called.

Choose an answer

Fiscal policies

Monetary policies

Incomes policies

Supply side policies

A feasible effect of international trade is that a

Choose an answer

Monopoly in the home market become an oligopoly in the world market

Oligopoly in the home market becomes a monopoly in the world market

Purely competitive firm in the home market becomes an oligopolistic

Purely competitive firm in the home market becomes a monopolist

The equilibrium level of income of the open economic model is.

Choose an answer

200

400

300

500

The "Law of demand" most directly means that consumers buy

Choose an answer

More of a good the higher their incomes, ceteris paribus.

Less of good the higher its price ceteris paribus

Buy more of a good the less is its supply ceteris paribus

Buy less of a good the greater is its supply ceteris paribus

According to Islamic economic system the producers can earn.

Choose an answer

Normal loss only

Normal profit only

Abnormal loss

Abnormal profit

In the UK in recent years, union membership has ______ and days of work lost because of strikes has.

Choose an answer

Grown, declined

declined, declined

declined, grown

grown , grown

The term focused group was coined by

Choose an answer

Powel

Merton

Eruest Dichter

Mitchell

Firm A's margin of safety is.

Choose an answer

0.10

0.40

0.20

0.30

As the MPS increases, the multiplier will

Choose an answer

Increase

Either increase or decrease depending on the size of the change in investment

Remain constant

Decrease

The aggregate supply of labor is the

Choose an answer

Total amount of time a person works over his or her lifetime

Total amount of time a person spend in the labor force over his or her life time

Unemployment rate

Sum of the labor supplied by everyone in the economy

If the coefficient of income elasticity is negative.

Choose an answer

Inferior good

Normal good

Luxury good

All of these

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

Government may contribute to inflationary pressure on account of building up large.

Choose an answer

Numbers of employees

Welfare plans

Budget deficits

Expenditure.

If GNP of Pakistan nees it wil encourage

Choose an answer

Exports goods

imports goods

Both a and b

None

any number raise to the power zero is always equal to.

Choose an answer

zero

one

two

The number itself

Plan for research is labeled as.

Choose an answer

Case study

Research design

Intensive study

Exploratory research

Which of the following persons would be considered unemployed.

Choose an answer

a house wife

A person who worked more than 20 hours in a family owned business

A 15 years old looking for summer employment

A recent college graduate looking for her fist job

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%

Choose an answer

Rs.1654.29

Rs.100.00

Rs.94.00

Rs.68.00

Price equal to.

Choose an answer

Total revenue -quantity

Total revenue/quantity sold

total quantity sold * quantity sold

Total revenue/total cost

A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.

Choose an answer

Demand ; right

demand ; left

supply ; right

supply ; left

The risk free rate of interest would not be affected by.

Choose an answer

Changes in real output

Change in the money supply

Term to maturity

None of the above

World trade has been increasing due to.

Choose an answer

Increased tariffs

Increased legal barriers

Increased embargoes

Reduced protectionism

That the division of labor is limited by the size of th market best applies to which explanation of trade.

Choose an answer

Factor endowment theory

Product like cycle theory

Economics of scale theory

Over lapping demand theory

A cut in the tax rate designed to reduce the business investment is an example of.

Choose an answer

Expansionary demand side policy

Contractionary demand side policy

Expansionary supply side policy

Contractionary supply side policy

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