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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
To maximize revenue, an excise tax should be imposed on a product
Choose an answer
That has a highly elastic demand curve
Such as St. Joseph's children's' aspirin.
Such as salt
such as Toyota automobiles
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Question # 2
According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.
Choose an answer
An increase ; an increase
An increase; a decrease
A decrease ; an increase
a decrease ; a decrease
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Question # 3
The price of Ketchup at a market increases by 12.5% per can, which results in a decrease in quantity purchased by 40% per week, the demand is.
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Relatively elastic
Relatively inelastic
Perfectly elastic
Perfectly iinelastic
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Question # 4
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 # 5
Kharif crops include.
Choose an answer
Cotton and rice
Maize and Sugarcane
Jawar and Bajra
all of the them
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Question # 6
The goal of a pure market economy is to best meet the desires of.
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Consumers
Companies
Workers
The government
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Question # 7
An increase in costs will
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Shift aggregate demand
Shift aggregate supply
Reduce the natural rate of unemployment
Increases the productivity of employees
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Question # 8
As income increases.
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the average propensity to consume gets nearer in value to the marginal propensity to consume
the average propensity to consume diverges in value from the marginal propensity to consume
the average propensity to consume falls
The averge propensity to consume always approaches 0
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Question # 9
A state of government bonds by the central bank should cause
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Bond prices to rise
an increase in the supply of money
An increase in chartered banks loans
A decrease in reserves of the banking system.
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Question # 10
In monopolistic competition firm sell
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Same goods
Differential goods
Inferior goods
Superior goods
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Question # 11
A change that increases the real money supply relative to real money demand causes.
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The LM curve to shift down and to the right.
The LM curve to shift up and to the left
The IS curve to shift down and to the left
The IS curve to shift up and to the right.
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Question # 12
If any equation involving two variables, such as y -=2x + 1, the variable that appears on the right hand side of the equation is by convention called.
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Dependent variable
independent variable
Endogenous variable
Explained variable
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Question # 13
The costs of disinflation would be low if
Choose an answer
Expected inflation falls as inflation falls
Wages and price controls were used
The Phillips curve were nearly horizontal
The Phillips curve adjusted slowly to changes in inflation
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Question # 14
When the population is badly affected, which type of sampling is appropriate.
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Systematic sampling
Stratified sampling
Cluster sampling
None of the above
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Question # 15
Which one of the following would cause demand pull inflation.
Choose an answer
Increases iin production costs
Wage gains in proportion productivity gains
An increase in aggregate demand with shortages of sup ply
Monoposonistic labor markets
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Question # 16
Credit (+) items in the balance of payments correspond to anything that.
Choose an answer
Involves receipts from foreigners
Involves payments to foreigners
Increases the domestic money supply
Decrease the demand for foreign exchange
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Question # 17
Which of the following changes shifts the AD curve down and to the left.
Choose an answer
A temporary increase in government purchases.
A rise in the nominal money supply
A decrease in corporate taxes
A decrease in consumer confidence
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Question # 18
A square matrix with 1's in its principal diagonal and zeros every where else is.
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Diagonal matrix
Identity matrix
Leading diagonal
Scalar matrix
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Question # 19
An increase in the number of workers hired by a firm could result from
Choose an answer
a decrease in the marginal product of labor
a decrease in the marginal revenue product of labor
An increase in the real wage
A decrease in the real wage
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Question # 20
What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.
Choose an answer
Price falls, quantity rises
Price rises, quantity falls
Both price and quantity fall
Both price and quantity rise
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Question # 21
Rachel Carson wrote the book
Choose an answer
Silent spring
Transpersonal ecology
Deep ecology
None of these
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Question # 22
Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.
Choose an answer
Depreciation
Appreciation
fall
Devaluation
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Question # 23
"Treating an individual as typical of a group.
Choose an answer
Pure discrimination
statistical discrimination
Human capital
Specific skills
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Question # 24
Which among the following is the sensible theory of sampling.
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Induction
Inertia
Regularity
None of the above
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Question # 25
The overall Budget Deficit is financed from
Choose an answer
External borrowing
Non bank borrowing domestically
Bank borrowing plus the above two at a and b
None of the above
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Question # 26
If GNP of Pakistan nees it wil encourage
Choose an answer
Exports goods
imports goods
Both a and b
None
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Question # 27
Local correspondent's method can be applied only where a high degree of precision is not.
Choose an answer
Case
Necessary
Interview
Nalied
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Question # 28
Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.
Choose an answer
The break even level of income is 240
Dissaving takes place if income is 300
Consumption expenditures and saving are equal at an income level of 500
The MPS is constant for all levels of income
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Question # 29
Absolute advantage is determined by
Choose an answer
Actual difference in labor productivity between countries.
Relative difference in labor productivity between countries.
Both a and b
Neither a nor b
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Question # 30
The function of money do not include.
Choose an answer
an exchange of purchasing power
A unit of account
A medium of exchange
A store of value
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Question # 31
The factor endowment theory was pioneered by
Choose an answer
Adam Smith
David Richardo
Wassily Leontief
Ell Heckscher and Bartill Ohlim
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