Question # 1

In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to.

Choose an answer

up ; rise

up ; fall

down ; rise

down ; fall

Primary activities

Choose an answer

Forestry and fishing

Steel and chemical industry

Teachers , doctors

None of these

Those who argue in favor of import protection generally give the impression that such restricted trade will.

Choose an answer

Decrease the level of national security

Provide benefits to some particular industry

Provide benefits to the entire nation

Not yield welfare losses for the nation

The concept of the intuition of deep ecology is related to.

Choose an answer

Kant

Warwick fox

Spinoza

All of these

The opportunity cost of a student is.

Choose an answer

Course fees and rent

A loan from the bank

What the student could have earned in the best job available by not studying.

What the student will earn after graduation.

The value of an asset depends upon

Choose an answer

Its scrap value

Its depreciation

The present value of the failure stream of income it can earn.

the cost of loans

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

Choose an answer

IS ; RIGHT

IS ; Left

LM ; Left

LF ; Right

In substitution effect a consumer

Choose an answer

Shifts away from the commodity which price has risen

shifts in favor of commodity which price has risen

shifts away from the commodity which price has fallen

None of these

The ethics, importance is given tobio sphere and the large eco system.

Choose an answer

Life centered animal

Ecological holism

Environmental

animal

In perfect competition a firm is.

Choose an answer

Price taker

Price setter

Independent

Dependent

Compared to the case of perfect competition, a monopolist is more likely to

Choose an answer

Charge a higher price

Produce a lower quantity of the product

Make a greater amount of economic profit

All of the above

When real income increases, other things equal we fan expect the demand for real money holdings to.

Choose an answer

Fall

Not change

Increase

Decrease

The effects of inflation on the price competitiveness of a country's products may be offset by

Choose an answer

An appreciation of the currency

A revaluation of the currency

A depreciation of the currency

Lower inflation abroad

Developing countries that concentrate production in agricultural products or raw materials may face a long run decline in their international terms of trade because of.

Choose an answer

Inelastic demand for these products in advanced countries.

Large increase in the supplies of these products on world markets because of export expansion polices

sluggish demand for these products in advanced countries

All of the above

If an increase in the price of gasoline increases the demand for gas hybrid cars, then

Choose an answer

Hybrid cars are an inferior good

Gasoline and hybrid cars are complements in consumption

Gasoline is an inferior good

Gasoline and hybrid cars are substitutes in consumption

A rise in the exchange rate value of the rupee will most likely cause.

Choose an answer

A dollar to be worth less in learns of other currencies.

Imports to decrease

Exports to increase

The balance of payments curve to shift to the left

The method most commonly used to test the overall significance of a regression is.

Choose an answer

The t test

The F -test

Chi square test

R

if in a matrix , the number if rows is the same as the number of columns, it is called.

Choose an answer

Singular matrix

Non singular matrix

Square matrix

Column vector

Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of.

Choose an answer

Research and development subsides.

Loan guarantees

Low interest rate loans

All of the above

The locus of equilibrium of consumers due to changes in price of a commodity is known as.

Choose an answer

Price consumption curve

Income consumption curve

Producing possibility curve

None of these

If the estimated values of Y and Py in 1987 are Rs. 30,000 and Rs. 8 respectively the marginal revenue of X is.

Choose an answer

260 - 160 x

420 - 4Qx

240 - 16 Px

80 - 4Qx

Which of the following does not characterize monopolistic competition.

Choose an answer

Product differentiation

Many producers

Absence of advertising

Some control over price

In Islamic economic system business is allowed in the field of.

Choose an answer

Halal goods only

beneficial goods

Consumer goods

All of these

Demand for a normal product may shift outwards if.

Choose an answer

Price decreases

The price fo a substitute falls

the price of a complement rises

Income falls

The sign of the simple correlation coefficient is determined by

Choose an answer

The intercept of the least squares equation.

The slope of the least squares equation

The appropriate economic theory.

The researcher

In linear consumption function with a positive slope less that on means that if income increase, consumption will.

Choose an answer

Fall

Not change

Fluctuate

Increase

All of the following represent obstacles to LDC development except.

Choose an answer

Resource scarcity

Low level of investment

Low population

Poor infrastructure

Law of variable proportion sis applicable in.

Choose an answer

Short run

Long run

Anytime

Fore ever

If A, B, C and D are any four market baskets, and if the consumer has ranked them so that D is preferred to C, A is hot preferred to B, and B is not preferred to c then.

Choose an answer

A is preferred to C

A is preferred to D

B is preferred to D

D is preferred to A

The real money demand doubles while the nominal money supply is unchanged what happens to the price level.

Choose an answer

The price level increase by a factor of four

The price level doubles

The price level is unchanged

The price level falls by one half.

Which of the following is NOT characteristics of underdeveloped nations.

Choose an answer

Low per capita income

Low growth rate of GNP

General needs for substantive investment in the infrastructure

Low population growth rates

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