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PPSC Economics Full Book MCQ Test MCQs With Answers
Question # 1
Which of the following are functions of inferential statistics.
Choose an answer
Estimation
Testing of hypothesis
Both a and b
None of these
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Question # 2
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.
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Question # 3
Menu costs in relation to inflation refer to
Choose an answer
Costs of finding better rates of return
Costs of altering price lists
Costs of money increasing its value
Costs of revaluing the currency
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Question # 4
Whose opinions have revolutionized the scope of macro economics.
Choose an answer
Adam Smith
J.B. Say
J.M. Keynes
All of the above
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Question # 5
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 # 6
During inflation.
Choose an answer
Lenders lose borrowers gain.
Borrowers lose , lenders gain
The real interest rate rises
Borrowers and lenders both lose.
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Question # 7
When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical.
Choose an answer
SRAS
AD
LRAS
None of the above
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Question # 8
What lies is at the heart of the allocation of goods and services in a free market economy.
Choose an answer
Concerns of equity or equal distribution among individuals.
The order or command of the ruling government or dictator
The wishes of consumers in the market
The price mechanism
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Question # 9
Which of the following is a possible government objective as opposed to a policy.
Choose an answer
Lower interest rates
Lower taxation rates
Lower government spending
Lower inflection
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Question # 10
Ad valorem tariffs are collected as.
Choose an answer
Fixed amounts of money per unit traded
A percentage of the price of the product
A percentage of the quantity of imports
All of the above
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Question # 11
What is the per unit marginal cost of increasing production from 20 to 25 units.
Choose an answer
Rs. 3,500
Rs.100
Rs.4,000
Rs.500
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Question # 12
If an economy experience an increase in productivity it means that.
Choose an answer
the level of output has risen
Employees are working harder than before
Output per unit of input has risen
Technical change has taken place
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Question # 13
A fall in investment demand can result from
Choose an answer
Higher interest rates
Lower expected future profits
More expensive capital goods
All of the above
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Question # 14
Aggregate demand will increase if
Choose an answer
Consumption falls
Investment falls
Exports fall
imports fall
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Question # 15
Ahmed uses dummy variables in order to determine the monthly seasonal effect in her regression model. The number of dummy variables used will be.
Choose an answer
5
11
12
1
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Question # 16
Economic growth can be measured by
Choose an answer
The CPI
The CBI
GDP
MPC
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Question # 17
Nationalism, self sufficiency, and imperial power were central concerns of.
Choose an answer
French physiocrats
Thomas Malthus
Mercantilists
Adam Smith
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Question # 18
Gold -Collars workers fall in
Choose an answer
Primary activity
Tertiary production
Quinary activity
None of these
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Question # 19
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
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Question # 20
An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.
One that is temporary.
Choose an answer
The LM curve
The IS curve
The FE line
The labor demand curve
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Question # 21
Nominal GNP measures income
Choose an answer
At the present time
Corrected for tax changes
Corrected for changes in interest rates
At current prices
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Question # 22
An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____
Choose an answer
A movement along the AS curve cost push inflation
A leftward shift int he AS curve demand pull inflation.
A right ward shift in the AS Curve cost push inflation
a left ward shift in the AS curve cost push inflation
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Question # 23
The reason that only final sales are counted in GDP is
Choose an answer
To avoid double counting good that are sold so as to be resold
To not count production in other countries
Because the government can't get records on intermediate sales.
To simplify the computation and no other reason
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Question # 24
What happens to the money supply if the deficit is financed by selling bonds to the general public.
Choose an answer
The money supply increaes
The money supply decreases
The money supply is unaffected
We cannot tell what will happen to the money supply
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Question # 25
Quantitative characteristics includes.
Choose an answer
Beauty
Emotion
Intelligence
Data
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Question # 26
A temporary decline in productivity would cause the IS curve to.
Choose an answer
Shift up and to the right
Shift down and to the left
Remain unchanged
Shift up and to right only if people face borrowing constraints
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Question # 27
Which policy is an expenditure switching policy.
Choose an answer
Increase in the money supply
Decrease in government expensitures
Increase in business and household taxes
Decrease in import tariffs
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Question # 28
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
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Question # 29
"Principles of economics" is the book of
Choose an answer
Robbins
Adam smith
Hicks
Marshall
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Question # 30
Price discrimination is possible
Choose an answer
Oligopoly
Duopoly
Perfect competition
Monopoly
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Question # 31
Which of the following is a policy instrument .as opposed to a government objective.
Choose an answer
Lower interest rates
A better balance of trade position
Faster economic growth
Lower un employment
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