Question # 1

Short run is a time frame where a firm can change its.,

Choose an answer

Total cost

Total production

Plant size

None of these

The study which wants to determine the frequency of occurrence of an event of its association with something.

Choose an answer

Descriptive

Explorative

Formulate

Diagnostic

The recording of the data is dome on the basis of the scheme.

Choose an answer

coding

Tabulation

Classification

Analysis

In a "Lorenz curve diagram absolute equality in income distribution would appear as.

Choose an answer

A curved line well bowed out from the diagonal

A curved line close to the diagonal

A right angled line

A diagonal line

According to the balances growth theory

Choose an answer

UDCs can be developed by foreign aid

UDCs can be developed by national saving

UDCs have to start from beginning

DCS are responsible for the development of UDCs

The Philips curve shows the trade off between ________ and _____

Choose an answer

The inflation rate, interest rates

The inflation rate, the unemployment rate

interest rates, output

Output, employment

If the marginal revenue is positive

Choose an answer

Selling another unit will increase total revenue

Selling another unit will increase profits

Selling another unit will increase cost

Selling another unit will increase average revenue

In a private sector model

Choose an answer

Household saving is a leakage from the circular flow

Investment is a spending injection

All of the above

None of the above

The set of subsets of a set A is called.

Choose an answer

Power set of A

Complement of A

Both a and b

None of these

If the fprice in a market is fixed by the government below equilibrium.

Choose an answer

There is excess equilibrium

There is excess supply

There is excess demand

There is equilibrium

The nation, that, following currency depreciation, the balance of trade falls for a while before increasing is called a ________ effect.

Choose an answer

Relative price

Elasticity

J- Curve

Pass through

Economists tend to judge a model based upon

Choose an answer

the realty of its assumptions

The accuracy of its predications

Its simplicity

Its complexity

You know that all taxes are distortionary under what conditions will this knowledge lead you to appose the imposition of every single tax in the economy.

Choose an answer

If you live in a 1st best world.

If you live in a 2nd best world

If the tax rates on some of the items are prohibitively high

Either of the above

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

Choose an answer

Move into surplus

Move into deficit

Remain unchanged

None of these

Finance minister tax a commodity

Choose an answer

having elastic demand

ignore elasticity

Having unti elastic demand

Having unit elastic demand

Among the institutions and polices that have been created to support developing countries are.

Choose an answer

the World bank

The international Monetary Fund

The Generalized system of Preferences

All of the above

In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up the equilibrium level of aggregate output to _______ and the IS curve to shift to the _______

Choose an answer

rise ; left

rise ; right

fall ; left

fall ; right

In monopolistic competition, firms desire to sell more output at equilibrium because.

Choose an answer

Price is greater than average cost

Price is greater than average variable cost

Price is greater than marginal cost

Price is equal to marginal revenue

Employment tends to _______ whwn aggregate output.

Choose an answer

rise, falls

rise ; rises

falls; rises

Not change ; falls

An outward shift in the marginal efficacy of capital should.

Choose an answer

Decrease consumption

Increase aggregate demand

Reduce aggregate supply

Slow economic growth

According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.

Choose an answer

Cyclical ; frictional and structural

Frictional and cyclical , structural

Structural , frictional and cyclical

Frictional and structural ; cyclical

How do the banks gain from this corporate behavior.

Choose an answer

More loans can be made

Tax free profits can be made

Interest rates can be increased

By circumvent banking regulations

The average variable cost curve.

Choose an answer

Is derived from the average fixed costs

Converges with the average cost as output increases

Equals revenue minum profits

Equal the total costs divided by the output

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

Choose an answer

rise ; LM ;right

rise ; IS ; right

fall ; LM, Left

rise ; IS ; Left

For a positively skewed distribution.

Choose an answer

mean > mode ? median

mean > median > mode

mode > mean > median

mean < mode < median

The competitive firm maximizes its profit by operating where

Choose an answer

Average costs are at a minimum

Total revenue is at a maximum

Profit per unit is at a maximum

Marginal cost equals price

A shift in supply will have a bigger effect on price than output if demand is.

Choose an answer

Income elastic

Income inelastic

Price elastic

Price inelastic

Which of the following products will have an elastic demand.

Choose an answer

Flour

Cloth

Honda city

None of these

All of the following are types of imperfect competition except

Choose an answer

Monopolistic competition

Oligopoly

Monopoly

Unfair competition

Disposable incomes is equal to.

Choose an answer

National income Minus taxes

Real GDP

National income Minus taxes

National income Minus Taxes plus transfers

The diamond water paradox can be explained by suggesting that the price of a product is determined by.

Choose an answer

Consumer incomes

Its marginal utility

Consumer surplus

Diminishing marginal utility

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