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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
A nation experiences internal balance if it acieves.
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Full employment
Price stability
Full employment and price stability
Unemployment and price instability
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Question # 2
The term skewness refers to.
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Bulginess
Lack of symmetry
symmetrical
Normal
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Question # 3
A nation experience external balance if it achieves.
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No net changes in its international gold stocks
Productivity levels equal to those of its trading partners
An increases in its money supply equal to increases overseas
Equilibrium in its balance of payments
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Question # 4
What does ceteris paribus mean.
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"Scientific method"
"Rational thinking"
"Other things remaining the same"
"There is no such thing as a free lunc"
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Question # 5
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 # 6
Which of the following rights be a scarce good.
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Love
faith
Self control
All of above
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Question # 7
Which of the following causes M1 demand to decrease.
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A fall in the tax rate
An increase in income
A fall in the interest rate
An increase in the use of credit cards
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Question # 8
Which of the following is not an element of the redistribution with growth policy approach.
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Minimum wage legislation
Land refrom
Progressive taxation
Increased access to education
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Question # 9
Those who favor setting the target rate of inflation at about 3% believe.
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The cost of moderate inflation can be minimized by indexing the tax system and bonds
that the cost of going to 0% is very low
That moderate inflation increases money illusion
Believe that moderate inflation aggravates the time inconsistency problem
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Question # 10
Which of the following results in an increase in the value of the dollar.
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Interest rates n the united states decrees, ceteris paribus
Interest rates in foreign countries increase, ceteris paribus
Price level in the United States increases, ceteris paribus
Productivity in the united states increases, ceteris paribus
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Question # 11
The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.
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Crowding out
Recognition lag
Public sector borrowing requirement
Fiscal drag
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Question # 12
A decrease in wealth would cause the IS curve to
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Shift up and to the right
Shift down and to the left
Remain unchanged
Shift up and to the right only in poeple face borrowing constraints.
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Question # 13
If labour productivity per week is 200 units and there are 5 employees what is the total output.
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40 units
195 units
1000 units
200 units
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Question # 14
If the coefficient of price elasticity is less than one
Choose an answer
It is normal good
It is inferior good
It is luxury good
All of these
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Question # 15
The multiplier tells us how much __________ chagnes after a shift in.
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Consumption, income
Investment , output
Savings, investment
output, aggregate demand
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Question # 16
If the price is less than the average cost but higher than the average variable costs.
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The firm is making a loss and will should own in the short term.
The firm is making a profit.
The firm is making a loss but will continue to produce in the short term
The firm is making a loss and is making a negative contribution to fixed costs
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Question # 17
Micro economics is conceded with
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The economy as a whole
The electronics industry
The study of individual economic behavior
the interactions within the entire economy
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Question # 18
Which of the followig does not shift the IS curve .
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An increases in autonomous consumption
An increase in government spending.
A decline in government spending
A fall in theinterest rate
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Question # 19
The largest trading partner of Pakistan is
Choose an answer
Italy
UK
USA
None of these
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Question # 20
When the export function is Rs.100-0.2 Y , net exports are 0 when income is .
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Rs.300
Rs.400
Rs.500
Rs.600
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Question # 21
The arc income elasticity of demand is approximately
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0.02
1.9
3.3
0.5
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Question # 22
A linear function of the form 6x2 - 2y + 8 = 0 is known as.
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Explicit function
implicit function
Quadratic function
All of the above
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Question # 23
Which of the following is true about skewed distribution.
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It is symmetrical
Mean, median and mode concede
Similar to normal distribution.
The more mean moves away from mode larger skewness
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Question # 24
Ad valorem tariffs are collected as
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Fixed amounts of money per unit traded
A percentage of the price of the product
A percentage of the quantity of imports
All of the above
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Question # 25
The idea that the natural rate of unemployment rises when the acual rate of unemployment rise is known s.
Choose an answer
Stabilization
Insider outsider theory
Hysteresis
an efficiency wage model
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Question # 26
In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by
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The government
Consumers and firms
Banks and stock markets
Firms, consumers, and government.
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Question # 27
For a borrower an increase in the real interest rate will lead to.
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Higher current consumption and less borrowing
Higher current consumption and less saving
Lower current consumption and less borrowing
Lower current consumption and less saving
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Question # 28
If the demand for money increase relative to the supply of money
Choose an answer
Interest rates will trend upward
Interest rates will trend downward
Interest rates are not affected by increases in money demand
Interest rates will behave randomly
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Question # 29
Wars new inventions, harvest failures, and change sin government policy are examples of.
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The business cycle
Economics models
Shocks
Opportunity costs
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Question # 30
Which of the following is a policy instrument .as opposed to a government objective.
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Lower interest rates
A better balance of trade position
Faster economic growth
Lower un employment
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Question # 31
During inflation.
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Lenders lose borrowers gain.
Borrowers lose , lenders gain
The real interest rate rises
Borrowers and lenders both lose.
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