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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
Indifference curve theory is old wine in new labeled bottle is said by.
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Marshall
Griffin
Ricardo
Allen
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Question # 2
Intra industry trade therory.
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Explains why the United States might export autos and import clothing
Explains why the united states might export and import differentiated versions of the same product such as different type of autos.
Assumes that transport costs are very low or do not exist
Ignores seasonal considerations for agricultural goods
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Question # 3
In Islamic economic system business is allowed in the field of.
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Halal goods only
beneficial goods
Consumer goods
All of these
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Question # 4
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 # 5
Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.
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Move into surplus
Move into deficit
Remain unchanged
None of these
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Question # 6
A temporary adverse productivity shock would.
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Shift the labor supply curve upward
Decrease the level of employment
Decrease future income
Decrease the expected future marginal product of capital
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Question # 7
The valued of expenditure multiplier relates.
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The change in autonomous spending to the change in income
the change in consumption to change in income
The change in come to the change is consumption
The change in income to the change in autonomous spending.
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Question # 8
According to Marshall the basis of consumer surplus is.
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Law of diminishing marginal utility.
Law of equal marginal utility
Law of proportions
All of the above
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Question # 9
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 _______
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rise ; LM ;right
rise ; IS ; right
Fall ; LM ; left
rise ;IS; right
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Question # 10
More trade and more and is the demand made by the
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Developing countries
Developed countries
More developed countries
Non developing countries
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Question # 11
A tariff that prohibits imports has only
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a revenue effect and redistribution effect
Revenue effect and protection effect
Consumption effect and protection effect
Redistribution effect and consumption effect
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Question # 12
The factor endowment theory was pioneered by
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Adam Smith
David Richardo
Wassily Leontief
Ell Heckscher and Bartill Ohlim
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Question # 13
Firms in perfect competition face a
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Perfectly elastic demand curve
Perfectly inelastic demand curve
Perfectly elastic supply curve
Perfectly inelastic supply curve
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Question # 14
The notation of Relationship is important
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Dominations ecology
Deep ecology
Sympathy ecology
None of these
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Question # 15
In the Keynesian model which curve is vertical.
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LRAS
SRAS
AD
NS
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Question # 16
Why do people keep currency in their pockets when bank deposits pay interest.
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Because banks might steal your money
Because currency is more liquid
Because bank deposits lose value due to inflation
Because bank deposits lose value due to exchange in interest rates.
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Question # 17
Since 1960, the rate of economic growth in the country has been
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On the decline continuously
Increasing continuously
Increasing occasionally
Static in real terms
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Question # 18
A decrease in the marginal propensity to import will lead to.
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An increase in GNP
Lower the multiplier
An increase in imports
A decrease in imports
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Question # 19
To avoid double counting when the GNP is estimated, economists
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Price all goods and services bought and sold in all markets
Use the GNP deflator
Price only intermediate goods
Calculate value added at each stage of production.
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Question # 20
If a monopoly is unable to cover its short run variable costs, if should.
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Shut down
Raise price
Lower price
Increase output
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Question # 21
In perfect competition the industry will be in equilibrium.
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when all the firms earning abnormal profit
When all the firms earning normal profit
All firms having loss
All firms having proft
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Question # 22
The Islamic mode of business where the subscriber participate with the money and the manager with skill and labor is.
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Qarz -e - hasna
Musharika
Mudaraba
Islamic business
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Question # 23
What lies is at the heart of the allocation of goods and services in a free market economy.
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Concerns of equity or equal distribution among individuals.
The order or command of the ruling government or dictator
The wishes of consumers in the market
The price mechanism
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Question # 24
The theory that is equilibrium workers wages will barely be adequate for biological needs is knows as the.
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Labor theory of value
Convergence hypothesis
Subsistence theory of wages
Indicative planning model
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Question # 25
To be considered a good candidate for an export cartel a commodity should.
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Be a manufactured good
Be a primary product
Have a high price elasticity of supply
Have a low price elasticity of demand
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Question # 26
Major sector of the Pakistan economy in
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Export sector
Industrial sector
Services sector
Agriculture sector
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Question # 27
The value of a household's assets minus the value of its liabilities is called.
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Income
Debt
Stock
Wealth
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Question # 28
The main role of the Federal Reserve is to
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Administer the government on the state of the economy
Overses the operations of the financial system and monetary management.
Establish the value of the dollar and official interest rates
Provide advice to the government on the state of the economy.
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Question # 29
Pure research also known as
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Fundament research
Action research
Practical research
applied research
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Question # 30
A monopolistically competitive firm differs from a perfectly competitive firming that unlike the perfectly competitive firm it.
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Faces a downward sloping demand curve
Can change the characteristics of its product.
Can vary the price of its product.
All of the above
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Question # 31
It enables the researcher to acquaint himself with current knowledge in the field in which he is going to conduct his research.
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Social survey
Research proposal
Review of literature
Research design
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