Question # 1

The product cycle theory of trade is essentially a

Choose an answer

Static short run trade theory

Dynamic, long run trade theory

Zero sum theory of trade

Negative sum theory of trade

In substitution effect a consumer

Choose an answer

Shifts away from the commodity which price has risen

shifts in favor of commodity which price has risen

shifts away from the commodity which price has fallen

None of these

The term of trade is given by the process.

Choose an answer

Paid for all goods exported by the home country

Received for all goods exported by the home country

Received for exports and paid for imports.

Of primary product as opposed to manufactured products.

Indifference curves shows various combinations of.

Choose an answer

One commodity

Two

Three

All of these

Historically countries at early stages of rapid economics development have tended to experience.

Choose an answer

Trade deficits and an excess of investment over domestic saving.

Trade surpluses and an excess of investment over domestic saving

Trade deficits and an increase of domestic saving over investment.

Trade surpluses and an excess of domestic saving over investment.

A movement along the demand curve may be caused by

Choose an answer

A change in income

A change en the number of buyers

A change in advertising

A shift in supply

The IS curve shows the combinations of output and the real interest rate for which.

Choose an answer

The goods market is in equilibrium

The labor market is in equilibrium.

The financial assets market is in equilibrium

An increase in output will cause the market clearing interest rate to be bid up.

Finance minister tax a commodity

Choose an answer

having elastic demand

ignore elasticity

Having unti elastic demand

Having unit elastic demand

When we refer to the hidden economy we mean unrecorded income owing to.

Choose an answer

Tax evasion

Poor statistics

The lags between statistical collection and publication .

Smuggling

About __________ of land is cultivated through irrigation water.

Choose an answer

75%

45%

60%

35%

An example of nondiscretionary fiscal policy would be.

Choose an answer

The operation of the welfare state

A Federal jobs program adopted to stimulate consumption

A tax cut adopted to stimulate consumption

An interest rate cut implemented to stimulate consumption

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Choose an answer

20.2

19.9

14.7

17.2

Relation with other aspect of research creates.

Choose an answer

Values related problem

Ethical problem

Personal prejudice and bias

Moral dilemmas

Eco Philosophy mainly deals with ethical part

Choose an answer

Philosophy

Metaphysics

Logic

Aesthetics

Intermediate goods are meant for

Choose an answer

Direct use by the consumers

Further processing

The term do not exist

None

The aggregate demand curve is downward sloping because a higher price level.

Choose an answer

Makes people wealthier and so they spend more

Causes higher wages and so people spend more

Cuts the real value of income and so people spend less

Decreases the real supply of money decreasing spending.

A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______

Choose an answer

rise ; LM ;right

rise ; IS ; right

Fall ; LM ; left

rise ;IS; right

The standard of living is often measured by

Choose an answer

Real GDP per capita

Real GDP

Real GDP * Population

Real GDP Plus depreciation

The sign of the simple correlation coefficient is determined by

Choose an answer

The intercept of the least squares equation.

The slope of the least squares equation

The appropriate economic theory.

The researcher

The government budget surplus equals

Choose an answer

Government purchases plus transfers

Net government receipts minus government purchases

Government purchases minus net receipts

Government purchases minus transfers.

A supply schedule shows the relations between the quantity supplied of a commodity over a given time and.

Choose an answer

Factor prices

Technology

Both a and b

The price of the commodity

Pakistan's fiscal year starts from

Choose an answer

1st September

1st January

1st April

1st July

If input price adjusted very slowly to output prices, the Phillip's curve would be.

Choose an answer

Downward sloping

Vertical or nearly vertical

Upward sloping

Horizontal or nearly horizontal

Because a monopoly hires workers up to the point where their marginal revenue product equals the wage rate the monopoly will.

Choose an answer

Pay less than the going wage rate

Pay a wage equal to the value of the marginal product of labor

Pay less than the value of the marginal product of labor

Pay workers what they are worth to society

If a government imposed price celling causes the observed price in a market to be below the equilibrium price.

Choose an answer

There will be excess demand

There will be excess supply

The curves will shift to make a new equilibrium at the regulated price

None of the above

If the central Bank wished to Tighten money is would.

Choose an answer

Lower the discount rate

Sell government securities

Lower the legal reserve ratio

Lower the tax rate

A long-run total cost curve can be constructed from

Choose an answer

An income consumption curve

A price consumption curve

Isoquant is cost expansion path diagram

An Engel curve

International specialization takes place because of.

Choose an answer

Differences in technology

Differences in factor endowments

Scale economies

All of the above

After a temporary beneficial supply shock hits the economy general equilibrium is restored by

Choose an answer

A shift down and to the left of the IS curve

A shift to the left of the FE line

A shift up and to the left to the LM curve

A shift down and to the right of the LM curve

If the government lower taxes by $10 billion, the Real GDP will rise by

Choose an answer

More than $10 billion

Less than $10 billion

Exactly $10 billion

None of these

An increase in the discount rate at the FED generally has the following effect on bond prices.

Choose an answer

There is no demonstrated effect

Such an increase tends to lower bond prices.

Such an increase tends to raise bond prices

Bond prices are related to the government purchase and sale of bonds.

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