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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
Head quarter of World Economic forum is situated in
Choose an answer
Devos
London
Geneva
New York
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Question # 2
The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.
Choose an answer
Foreign capital flows to the U.S.
The U.S. dollar appreciates
Real net exports decline
American real GNP experience a slower rate of growth
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Question # 3
Parameter in inferential statistics refers to
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Sample value
Data
Population value
Variable name
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Question # 4
The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.
Choose an answer
Velocity of money
Nominal output
Overall price level
Stock of money
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Question # 5
Ordered Pairs of two sets are called.
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Elements
Function
Cartesian product
None of the above
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Question # 6
To basic objective of sampling study is.
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To draw inference
To check units of population
To collect numerical data
To make census
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Question # 7
If government spending of Rs. 10 and a lump sum tax of Rs.10 is added, the empirical equation for the new IS curve becomes.
Choose an answer
Y = 285 + 20 I
Y = 270 - 10 i
Y = 285 - 50 i
Y = 210 - o.5 i
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Question # 8
Which of the following would cause the demand curve for an input to shift.
Choose an answer
A change in technology
A change in demand for the product being produced
An increase in the number of firms in the industry
All of the above
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Question # 9
Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are.
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Market prices
Sticky prices
Fixed prices
Regulatory prices
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Question # 10
The demand curve of unitary elastic commodity is.
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Rectangular hyperbola
Parabola
Straight line
None of these
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Question # 11
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 # 12
Less demand in the economy may increase unemployment this may lead to less spending which may reduce demand further This is called.
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The upward accelerator
The downward multiplier
The upward PPF
The downward MPC
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Question # 13
An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate
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right ; falls
right ; rises
left ; falls
left ; rises
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Question # 14
A dichotomous question can be answered in one of the
Choose an answer
three responses
Two responses
Multiple responses
free responses
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Question # 15
If A and B are symmetric matrix, then AB- BA is.
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Symmetric
Skew symmetric matrix
Idempotent matrix
Orthogonal matrix
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Question # 16
What does the phrases "there is no such thing as a free lunch'mean"
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Individuals must always pay money for the food the eat.
No restaurant wner will provide food to patrons unless they pay her
Restaurant owners act selfishly
Consumption of any good requires that other goods be given up
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Question # 17
In the period of Zia ul Haq the nationalized enterprises went on.
Choose an answer
Loss
Profit
Developing
None of these
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Question # 18
If the price of automobiles were to increase substantially the demand curve for gasoline would most likely
Choose an answer
Shift leftward
Shift right ward
Become flatter
Become steeper
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Question # 19
Which of the following would decrease aggregate demand.
Choose an answer
Increased consumption
Increasing export revenue
Increased taxation revenue
Increased investment
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Question # 20
Second step in problem formulation is
Choose an answer
Statement of the problem
Understanding the nature of the problem
Survey
Discussions
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Question # 21
Which of the following is a normative statement in economics.
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More spending by the government reduces poverty
Higher taxes lead to less desire to work
the UK Economy is growing fast relative to other European Union members
The Government should concentrate on reducing unemployment
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Question # 22
The low productivity of capital in Pakistan is due to.
Choose an answer
Low income
Low saving
Limited capital market
All of these
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Question # 23
The renowned economist and Islamic scholar who applied principles of politics economics was.
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Imam Abu Haneefa
ibn e Khaldun
Imam Abu Yousaf
Abu Qasim
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Question # 24
Quota sampling is the combination of.
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Purposive and stratified sampling
Purposive and deliberate sampling
Purpose and systematic sampling
stratified and systematic sampling
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Question # 25
A public good will
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Be underprovided in the free market
Be overprovided in the free market
Not be provided in the free market
Has no opportunity cost
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Question # 26
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 # 27
The product cycle theory of trade is essentially a
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Static short run trade theory
Dynamic, long run trade theory
Zero sum theory of trade
Negative sum theory of trade
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Question # 28
Headquarter of the Planning commission of Pakistan is located in.
Choose an answer
Karachi
Lahore
Islamabad
None of these
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Question # 29
The ethics, importance is given tobio sphere and the large eco system.
Choose an answer
Life centered animal
Ecological holism
Environmental
animal
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Question # 30
A decrease in the effective tax rate on capital would cause the IS curve to.
Choose an answer
Shift up and to the right
shift down and to the left
Remain unchanged
Remain unchanged if taxes are fully deducible from income otherwise, shift up and to the right
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Question # 31
In the EMU a country's competitiveness can change because of.
Choose an answer
Interest rate adjustment
Central bank intervention i the forex
Domestic wage and price adjustment
Devaluations
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