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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
Primary producers maybe labeled as.
Choose an answer
White coliar workers
Pink collar workers
Red collar workers
None of these
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Question # 2
Arne Naes founded the school of.
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Eco ethics
Deep ecology
Eco philosophy
Environmental ethics
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Question # 3
If leisure is an inferior good the individuals supply curve for labor is.
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Back ward bending
Completely inelastic
Upward sloping
Perfectly elastic
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Question # 4
The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.
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The marginal product of labor is positive
The marginal product of capital is positive
There is diminishing marginal productivity of labor
There is diminishing marginal productivity of capital
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Question # 5
Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is
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Positive
Negative
Infinite
None of these
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Question # 6
When equilibrium in the money and goods markets occurs at a rate of interest below the BP schedule internal and external equilibrium for the United States can he achieved by.
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Expanding the U.S. money supply
Increasing government spending
Increasing taxes
Lowering interest rates in the united states.
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Question # 7
The largest lenders to less developed countries are
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Western government
Multi lateral agencies
Private banks
Invidia investors who purchase government bonds
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Question # 8
There are three fundamental questions every society must answer Which of the following is one of these questions.
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What goods and services are to be produced.
How are the good and services to be produced.
Who will get the goods and services what are produced.
All of the above
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Question # 9
An increase in aggregate demand if aggregate supply is totally inelastic will.
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Increase price but not output
Increase output but not price
Increase out put and price
Decrease output and price
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Question # 10
Economic transition involves high inflation because ______ and _____
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High monetary growth, high wages.
High budget deficits, devaluation
High monetary growth, devaluation
Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.
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Question # 11
If the nominal money supply doubles while real money demand is unchanged what happens to the price level.
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The price level increases by a factor of four
The price level doubles
The price level is unchanged
The price level falls by one half.
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Question # 12
The overall Budget Deficit is financed from
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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 # 13
Given the data above, the empirical equation for the IS curve is.
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Y = 275 + 10 i
Y = 225 + 50 i
Y = 250 - 10 i
Y = 275 - 501
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Question # 14
According to the .A.H Hasen the capitalistic economy is basically characterized with
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Instability
Stability
Inefficiency
Efficiency
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Question # 15
Floating exchange rates are __ in the short run
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Stable
Volatile
Predictable
Depreciating
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Question # 16
Per Capita income is obtained by dividing National income by
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Total labor Force in the country
Unemployed Youth in the country
Total population of that country
None
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Question # 17
The yield curve shows
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The yields on stocks of different maturities
The interest rates on bonds of different maturities.
The yields on stocks with differing default risk
The yields on bonds with differing default risk
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Question # 18
Empirical research may given a new focus to the exiting theory means.
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Research clarifies theory
Researh intitiate theory
Reach refocuses theory
Psychoanalytic theory
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Question # 19
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 # 20
A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate
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Rises ; rises
rises ; falls
falls ; rises
falls ; falls
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Question # 21
For a Muslim living within the code of Islam primary source for the the solution of economic problems is.
Choose an answer
the Holy Quran
Sunnah
Both a and b
None of these
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Question # 22
Which of the following is an example of government policy that could reduce inflation.
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Increasing bank lending
increasing import duties
Reducing government expenditure
Reducing direct taxation
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Question # 23
The effect of the most favored nation clause is to
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Eliminate at tariffs between countries.
Increase all tariff rates between countries
Maintain a nondiscriminatory structure of tariffs
Marlein a discriminatory structure of tariffs.
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Question # 24
A natural monopoly has a declining ________ over a large range of output.
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Long run marginal cost
Short run marginal cost
Long run average cost
Long run marginal cost
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Question # 25
There are __________ basic economic activities.
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2
3
4
5
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Question # 26
Biocentrism comes under
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Life centrism
Ecologism
Anthropocentrism
Materialism
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Question # 27
Inflation.
Choose an answer
Reduces the cost of living
Reduces the standard of living
Reduce the price of products
Reduces the purchasing power of a price
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Question # 28
Short run equilibrium output means that aggregate demand _ actual output
Choose an answer
is less than
equals
is greater than
fluctuates around
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Question # 29
You move some of your savings account balance into your checking account.
Choose an answer
M2 falls and M1 rises
M1 falls and M2 rises
M1 and M2 are unchanged
M1 rises and M2 remains unchanged
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Question # 30
When an economy first begins to frow more slowly.
Choose an answer
GDP increase
Inflation is likely to increase
Stock levels are likely to increse
Investment in equipment is likely to increase
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Question # 31
In the mid 1960's agricultural scientists developed high yielding varieties of.
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Rice and Wheat
Rice and Cotton
Coffee, rubber
None of these
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