Question # 1

__________ is a said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries infavor of member countries.

Choose an answer

Trade creation

Trade diversion

Trade exclusion

Trade distortion

Scientific method in the application of valid and reliable research methods.

Choose an answer

Experimental

Survey

Methods

Enquiry

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

Choose an answer

up ; left

up ; right

down ; left

down ; right

Keynes considered subjective and objective factors.

Choose an answer

Determinants of investment

Determinants of business will ingress to supply

Unimportant determinants of consumption.

Important determinants of consumption.

A_______ is an example of a quota where foreigners hold quota licenses.

Choose an answer

Export quota

Embargo

Auction quota

Tariff quota

The purpose of fiscal policy is to

Choose an answer

Alter the direction of the economy

Change people's attitudes toward governemnt

Educate people as to the importance of economics

Offer insight into the way thing work

Relation between two numbers or variables are called.

Choose an answer

Function

Binary relation

Inverse relation

None of the above

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

Choose an answer

fall ; rise

fall ; fall

rise ; rise

rise; fall

In monopolistic competition firms profit maximize where

Choose an answer

Marginal revenue = average revenue

Marginal revenue= Marginal cost

Marginal revenue= Average cost

Marginal revenue = Total cost

In perfect competition a firm is.

Choose an answer

Price taker

Price setter

Independent

Dependent

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

Choose an answer

decreases ; rise

decreases ; fall

Increases ; rise

Increase ; fall

Why does it make sense in assume that people are rational, if you want to predict their behavior.

Choose an answer

People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

For any square matrix a of order 'n'a (Ad)A) is equal to.

Choose an answer

(Ad) A) A

Determinant A

Rank of A

Both a and b

A major advantage of monetary over fiscal policy is that monetary policty.

Choose an answer

Can be put into effect more quickly

Affects all sectors of the economy equally

Authorities are quicker to see the need for policy

Has a more direct and predictable impact on spending.

The regression results indicate that the standard error of estimate is.

Choose an answer

135.94

16.06

28.98

4.27

If a country an imposes an import tariff its welfare can improve if

Choose an answer

The country is a small country's than a larger country.

Its terms of trade improve enough

The tariff enhances the welfare of its trading partners

Its government's tax revenue increase because of the tariff

Oligopoly is a market structure in which

Choose an answer

Many firms each produce a slightly differentiated product

One firm produces as unique product

A small number of firms compete

Many firms produce an identical product

The abolition of income tax would probably ________ the number of workers in employment and____________ the equilibrium. rate of unemployment.

Choose an answer

increase ; decrease

increase ; increase

reduce ; increase

reduce ; reduce

In a less developed country.

Choose an answer

The infrastructure is likely to be good.

Real wages are likely to be high

Unemployment is likely to be low

The primary sector is likely to be significant

In the classical model of Ricardo the direction of trade is determined by

Choose an answer

Absolute advantage

Comparative advantage

Physical advantage

Which way the wind blows

The equilibrium price and quantity , given the inverse demand and supply functions.

po = 3q +30 and p s = 2q -5

Choose an answer

p = 9 and q = 7

p = 10 and q = 7

p = 9 and q = 8

p = 7 and q = 9

In marketing "USP " Stand for

Choose an answer

Unique selling proposition

Underlying sales pitch

Unit sales point

Under sales procedure

An oligopolistic industry can be characterized by all of the following except

Choose an answer

May sellers

mutual interdependence

Economies of scale

A homogenous product

A change in the money supply has a greater effect upon equilibrium income.

Choose an answer

The more interest sensitive private sector spending is.

The less interest sensitive private sector spending is.

The smaller the expenditure multiplier is

The more interest sensitive money holdings are to the rate of interest.

The measured of GDP includes

Choose an answer

Non market goods such as home making and child rearing

The benefits of clean air and water

Estimated values of activity in the underground economy

Purchases and sales of goods produced in previous periods

Bank create money by

Choose an answer

Printing it

Issuing debit cards

Accepting chequeens

Lending out part of their deposits

Qara -e- Hasna is normally payable to.

Choose an answer

Needy persons

Poors

Helpless

All of these

Research design as the conceptual structure with in which the research is.

Choose an answer

Judgment

Design

Survey

Conducted

As long as all prices remain constant an increase in money income results in.

Choose an answer

An increase in the slope of the budget line

A decrease in the slope of the budget line

An increase in the intercept of the budget line.

a decrease in the intercept of the budget line.

A competitive equilibrium is Pareto efficient because.

Choose an answer

Producers are price takers

Consumers and producer's face the same prices

Marginal costs and benefits are equal

All of the above

Which of the following characteristics if Islamic economic system is true

Choose an answer

An Islamic state is essentially a welfare state.

Ensure social justice

All economic problems are solved in the light of moral values

All of the above

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