Question # 1

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

Choose an answer

Rs.3.5 billion

Rs.1.5 billion

Rs. 4.9 billion

Rs.2.8 billion

"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.

Choose an answer

Weaken fiscal policy

Avoid monetary policy errors

Strengthen the impact of monetary policy

Ensure the independence of the central bank

In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.

Choose an answer

monetary ; monetary

monetary ; fiscal

fiscal ; monetary

fiscal ; fiscal

if we are told that the two statements y = 3x2 and y = x + 10' are bout true at the same time , they are called.

Choose an answer

Implicit functions

explicit functions

Simultaneous equations

Quadratic equations

the_____________ analysis considers the ability of domestic and foreign prices to adjust to devaluation in the short run.

Choose an answer

Pass through

Absorption

Adjustment mechanism

currency contract period

About __________ of land is cultivated through irrigation water.

Choose an answer

75%

45%

60%

35%

The free market involves

Choose an answer

The free provision of products

The subsidizing of products by the government

Market forces of supply and demand

All trade via barter

Which of the following explains why demand curves slope downward.

Choose an answer

Prices and income

substitutes and complements

Resources and technology

Substitution effect and income effect

Classical economics think general equilibrium is attained relatively quickly because.

Choose an answer

The real interest rate adjusts quickly

The level of output adjusts quickly.

The real wage rate adjusts quickly

The price level adjusts quickly.

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

Choose an answer

New Keynesians

Keynesians

Monetarists

The Classical shool

The Schumpeterian growth model is based upon

Choose an answer

Inveslors

Capital formation

entrepreneurs

all of these

An important feature of a___ is that the holder has the right , but not the obligation, to buy or sell currency

Choose an answer

Swap

Foreign exchange arbitrage

Foreign exchange option

Futures market contract

Arne Naes is a

Choose an answer

French philosopher

American philosopher

Norwegian Philosopher

Pakistani Philosopher

Factor that cause the IS curve to shift include.

Choose an answer

Change in autocoups consumer spending

Change in taxes

Change in government spending

All of the above

"The impact on this monetary aggregate of extensive finance innovation -the changes in the kinds of deposits and services offered by banks led the central bank to drop M1 as a n intermediate target with the changes in the way the public was holding payments balances the M1 aggregate no longer that the same reliable link to.

Choose an answer

Tax rates

The money supply

Aggregate demand

Government spending

The opportunity cost of acquiring education is.

Choose an answer

Course fees

Course fees and living expenses

The earning foregone

Course fees, living expenses and textbooks

What is the reason for the necessity of statistics in the field of social sciences.

Choose an answer

Simplification and quantitative approach

Knowledge acquisition and description

Easiness and analytical

all of the above

A sudden shift from import tariffs to free trade may induce short term unemployment in.

Choose an answer

Import competing industries

Industries that are only exporters

Industries that sell domestically as well as export

Industries that neither import nor export

An Engel curve is based on which one of the following assumptions.

Choose an answer

Constant prices, very incomes

Constant price, constant income

Constant incomes, varying prices

None of these

When there is a surplus in a market

Choose an answer

There is downward pressure on price

There is upward pressure on price

The market could still be in equilibrium

There are too many buyers chasing too few goods.

On a graph a positive linear relation ship.

Choose an answer

Moves down to the right

Moves up to the left

Moves up to the right

Modes down to the left

Economic growth may depend upon __________ and_________

Choose an answer

Population size , x -efficiency

Population age distribution, education

Population growth, education

Population growth, technical progress

Mercantilism.

Choose an answer

Is the philosophy of free international trade.

Was a system of export promotion and barriers to imports practiced by government .

Was praised by Adam Smith in the Wealth of Nations

Both a and c

The larger the required reserve ratio the.

Choose an answer

Smaller is the deposit multiplier

Larger is the deposit multitier

Larger is the amount of total deposits that can created from a new deposit

Larger is the amount of total money that can be created from a withdrawal

When two goods are substitutes a shock that raises the price of one good causes the price of the other goods to.

Choose an answer

Remain unchanged

Decrease

Increase

Change in an unpredictable manner

Which of the following is an example of primary data.

Choose an answer

Book

Journal

News paper

group interview

Money must fulfill all of the following functions except.

Choose an answer

Be a medium of exchange

Be a store of value

Be generally accepted as a means of purchasing commodities

The above are all functions of money

A temporary adverse productivity shock would.

Choose an answer

Shift the labor supply curve upward

Decrease the level of employment

Decrease future income

Decrease the expected future marginal product of capital

In a Boom

Choose an answer

Surpluses are likely to occur

Prices are likely to fall

supply will increase immediately to match demand

Shortages may occur

The IS curve shows the combinations of output and the real interest rate for which.

Choose an answer

The goods market is in equilibrium

The labor market is in equilibrium.

The financial assets market is in equilibrium

An increase in output will cause the market clearing interest rate to be bid up.

The main cause of different relative costs between countries are.

Choose an answer

Relative factors competition

Relative factor mobility

Relative factor substitution

Relative factor endowments

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