PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 The equilibrium price clears the market it is the price at which. Everything is sold Buyers spend all their money Excess demand is zero c and d
2 When we know the quantity of a product that buyers wish to purchases at each possible price we know. Demand Supply excess demand Excess supply
3 If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of. a nonlinear relationship A positive linear relationship A scatter diagram A negative linear relationship
4 On a graph a positive linear relation ship. Moves down to the right Moves up to the left Moves up to the right Modes down to the left
5 A straight line diagram can be drawn knowing the _______ and _____ Vertical axis and horizontal axis Intercept and slope Scale and slope Intercept and scale.
6 If your income during one year is L 10,000 ad the following year it is L,12,000 then it has grown by 20% 2% 12% 15%
7 The real value can be derived from a nominal value by Adjusting changes over time Adjusting for data collection errors Adjusting for population changes Adjusting for changes in prices
8 The retail price index is used to. Construct price lists Compare shop prices Measure changes in the cost of living None of the above
9 Macro economics is the study of. Individual building blocks in the economy The relationship between different sectors of the economy Household purchased decisions The economy as a whole
10 Micro economics is conceded with The economy as a whole The electronics industry The study of individual economic behavior the interactions within the entire economy
11 Normative economics form ______ based on. Positive statements facts Opinions, personal values Positive statements values Opinions facts
12 In a free market Government intervene Government plan production Government interfere Price adjust to reconcile scarcity and desires.
13 A market can accuretaly be described as A place to buy things a place to sell things The process by which prices adjust to reconcile the allocation of resources a place where buyers and sellers meet.
14 The opportunity cost of a good is. The time lost in finding it The quantity of other goods sacrificed to get another unit of that good The expenditure on the good The loss of interest in using savings
15 Economics is the study of Production technology Consumption decisions How society decides what how and for whom to produce The best way to run society
16 Which of the following organization primely provides long term loans to developing countries to help them develop the infrastructure such as schools hospitals and roads. World Bank International Monetary fund Council on Foreign Relations Organization of petroleum Exporting countries.
17 Suppose that the supply curve of lin is highly inelastic if the demand curve of lin decreases and increases cyclically along the supply curve of lin then in this market the size of the quantity fluctuations will be _____ the size of the price fluctuations. Relatively greater than Relatively less than the same as Any of the above
18 Export led growth strategies tend to emphasize. Resource allocation based on the principle of absolute advantage. Resource allocation based on the principle of comparative advantage. Trade protection for exporting competing firms Trade protection for import competing firms
19 Import substitution is an example of. The principle of comparative advantage The principle of absolute advantage An outward looking growth strategy An inward looking growth strategy
20 Which of the following strategies have developing countries not used to deal with the problem of unstable expert markets. Multilateral contracts Production and export controls Buffer stock arrangements Tariff rate quotes
21 The arrangement were goods imported from trading partners in the developing world are subject to lower tariff rates than good from other countries is referred to as. Normal trade relation status. Most favored nation status Generalized system of Preferences. Offshore assembly provisions
22 Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as agued rto resource allocation. Export promotion Import substitution International commodity agreements Multiateral contracts
23 The theory of ___________ suggests that government can assist domestic competitors. International dumping Countervailing duties Strategic trade policy Export promotion policy
24 The effect of the most favored nation clause is to Eliminate at tariffs between countries. Increase all tariff rates between countries Maintain a nondiscriminatory structure of tariffs Marlein a discriminatory structure of tariffs.
25 Those who argue in favor of import protection generally give the impression that such restricted trade will Decrease the level of national security Provide benefits to some particular industry Provides benefits to the entire nation Not yield welfare losses for the nation
26 According to the cost based definition of dumping dumping occurs when a firm sets a product abroad at a price that is less than Average total cost Average variable cost Average foxed cost Marginal cost
27 The form of dumping that represents the greatest potential net welfare loss the for importing nation is. Predatory dumping Sporadic dumping Persistent dumping Year end dumping
28 The form of intonational price discrimination normally associated with economic recession or excess inventions in the exporting nation is known as. Predatory dumping sporadic dumpling Persistent dumpling Year and dumping
29 Non tariff trade barriers could include all of the following except Domestic content laws Government procurement policies. Health , safety and environmental standards Autidumpiing /countervailing duties applied to imports
30 A_______ is an example of a quota where foreigners hold quota licenses. Export quota Embargo Auction quota Tariff quota
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