Economics Solved MCQs for CSS, NTS, FTS, ETEA, OTS, UTS, FPSC, PPSC, SPSC, PMS, PSC, KPKPSC, AJKPSC, SOPE Exam Preparation

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Economics Solved MCQs for CSS, NTS, FTS, ETEA, OTS, UTS, FPSC, PPSC, SPSC, PMS, PSC, KPKPSC, AJKPSC, SOPE Exam Preparation

Question. If inflation is 8 percent and the real interest rate is 3 percent, then the nominal interest rate must be ?

1. 3/8 percent
2. 5 percent
3. 11 percent
4. 24 percent

Correct Answer is: 11 percent

Question. Large payment to senior employee who is forced into retirement is called ?

1. Golden bonus
2. Golden shake hand
3. Friendly handshake
4. Golden handshake

Correct Answer is: Golden handshake

Question. The largest group to Which a person belongs is______________?

1. triad
2. family
3. primary
4. society

Correct Answer is: society

Question. If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?

1. is vertical
2. is negatively sloped
3. has a slope that is determined by how fast people adjust their price expectations
4. is positively sloped

Correct Answer is: is vertical

Question. How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts ?

1. Consumption in increase by Rs40,000 and net export decreases by Rs40,000
2. Net exports increase by Rs40,000
3. There is no impact because this transaction does not involve domestic production
4. Investment increased by Rs40,000 and net exports increases by Rs40,000

Correct Answer is: Consumption in increase by Rs40,000 and net export decreases by Rs40,000

Question. If both marginal cost and marginal revenue increase, a firm ?

1. Should increase output
2. Should reduce output
3. will require further information on how to respond
4. Should not change output

Correct Answer is: will require further information on how to respond

Question. In Western Europe in 9th C, originated military and social system in which a nobleman would grant the use of land to servant in return for service which is often military, and duty, Name the system ?

1. Military system
2. Land based system
3. Feudal system
4. Rural system

Correct Answer is: Feudal system

Question. Which of the following is not true about how people make decisions ?

1. people give too much weight to a small number of vivid observations
2. People are sometimes too sure of their own abilities
3. All of these answers are actually true statements about how people make decisions.
4. People are always rational maximizers
5. People are reluctant to change their minds in the face of new information

Correct Answer is: People are always rational maximizers

Question. Which of the following is not a characteristic of a monopolistically competitive market ?

1. free entry and exit
2. long run economic profits
3. many sellers
4. differentiated products

Correct Answer is: long run economic profits

Question. Which of the following is a withdraw from the circular flow income stream ?

1. Investment
2. Subsidies
3. Taxation
4. Consumption

Correct Answer is: Taxation

Question. What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?

1. The ceteris paribus effect
2. The diminishing marginal utility effect.
3. The substitution effect
4. The income effect

Correct Answer is: The substitution effect

Question. Social scientists explain the incest taboo as_______________?

1. biologically programmed
2. a religious universal
3. way of reducing family conflict
4. all of the above

Correct Answer is: way of reducing family conflict

Question. The policy that has been the most successful in increasing agricultural output in developing countries is ?

1. mechanization
2. land reform
3. import substitution
4. produce marketing boards

Correct Answer is: land reform

[+M.Tariq Malik]

Question. An increase in national income is ?

1. Likely in increase exports
2. Likely to decrease savings
3. Likely to decrease investment
4. Likely to increase spending on imports

Correct Answer is: Likely in increase exports

Question. The favorable evaluation of presidents is based on______________?

1. the caretaker role
2. strict adherence to the written Constitution
3. dynamic political leadership
4. the teflon principle

Correct Answer is: dynamic political leadership

Question. Which term is used for the value imprinted on a security ?

1. Real value
2. Net value
3. Par value
4. Gross value

Correct Answer is: Par value

Question. The PFI aims to deliver public projects and services using ?

1. Public borrowing
2. The private sector
3. time and motion studies
4. foreign labour

Correct Answer is: The private sector

Question. Depression is a drastic decline in a national of international economy It’s characteristic is ?

1. Decreasing business activity
2. Falling prices
3. Unemployment
4. All of these

Correct Answer is: All of these

Question. If a janitor got a job as a security guard because it was closer to home he would be experiencing_______________?

1. horizontal mobility
2. vertical mobility
3. intragenerational mobility
4. inter structural mobility

Correct Answer is: horizontal mobility

Question. Which is the most famous waterfall of the world ?

1. Superior
2. Balkan
3. Niagara
4. Angel

Correct Answer is: Niagara

Question. Which of the following is not an instrument of monetary policy ?

1. Taxation
2. Bank rate
3. Open-market operations
4. Credit rationing

Correct Answer is: Taxation

Question. What is the density of population in Pakistan total population of Pakistan ?

1. 38.6%
2. 42.6%
3. 41.0%
4. 32.5%

Correct Answer is: 32.5%

Question. A significant portion of actual world trade patterns results from ?

1. The industrial policies of governments
2. different sizes of the countries
3. different factor endowment between countries
4. the different tastes and preferences of people in different countries

Correct Answer is: different factor endowment between countries

Question. Which business device involves the creation of a new business by two or more companies often for a limited period of time ?

1. multinational corporation
2. international joint venture
3. horizontal merger
4. vertical merger

Correct Answer is: international joint venture

Question. Among the leading causes of divorce are_______________?

1. drug and alcohol abuse
2. infidelity
3. physical abuse
4. none of the above

Correct Answer is: none of the above

Question. Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

1. average costs to remain constant
2. average costs to decrease
3. average costs to increase
4. marginal costs to increase

Correct Answer is: average costs to remain constant

[+M.Tariq Malik]

Question. The rate of change for most of human history has been________________?

1. slow until the Industrial Revolution then rapid
2. rapid since the beginning of history
3. unchanged
4. slow because people are creatures of habit

Correct Answer is: slow until the Industrial Revolution then rapid

Question. The green house effect is the phenomenon by which ?

1. biological diversity is dominant in agricultural production
2. the globe’s water pollution affects plankton
3. the earth’s atmosphere traps infrared radiation
4. climatic changes occur naturally in the forest

Correct Answer is: the earth’s atmosphere traps infrared radiation

Question. Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?

1. They pay employees with delayed compensation such as a year-end bonus
2. They buy life insurance on their workers
3. They pay above equilibrium wages
4. They put hidden video cameras in the workplace

Correct Answer is: They buy life insurance on their workers

Question. Which of the following is NOT a characteristic of an upwardly mobile individual ?

1. Urban resident
2. More educated than parents
3. Comes from a large family of several brothers and sisters
4. Marries later and limits family to no more than two children

Correct Answer is: Comes from a large family of several brothers and sisters

Question. To maximise sales revenue a firm should produce where ?

1. Marginal cost is zero
2. Marginal revenue is maximised
3. Marginal revenue is zero
4. Marginal revenue equals marginal cost

Correct Answer is: Marginal revenue equals marginal cost

Question. Depression is a drastic decline in a national or international economy. It’s characteristic is_____________?

1. Decreasing business activity
2. Falling prices
3. Unemployment
4. All of these

Correct Answer is: All of these

Question. It is fairly certain that male and female brains________________?

1. are functionally identical
2. differ in left-right communication
3. distribute sensory functions differently
4. differ in size weight and capacity

Correct Answer is: differ in left-right communication

Question. Which is the oldest hydroelectricity project in Pakistan ?

1. Mangla
2. Tarbela
3. Warsak
4. Malakand Dargai

Correct Answer is: Malakand Dargai

Question. If PX > MCX, society gains by ?

1. raising the price of X.
2. production less X
3. Producing more X
4. Increasing the cost of producing X

Correct Answer is: Producing more X

Question. The hormones involved in the development of sex characteristics are_______________?

1. phlogiston and progesterone
2. progesterone and testosterone
3. estrogen and amylase
4. progesterone and estrogen

Question. The nuclear family is characteristic of industrial societies because______________?

1. most functions are better performed in secondary groups
2. geographic and social mobility are common in industrial societies
3. ascribed status is more important in industrial societies
4. a large family means more hands to work

Correct Answer is: geographic and social mobility are common in industrial societies

Question. When supply and demand are essentially equal the economy is said to be in________________?

1. a recession
2. equilibrium
3. equivalence
4. abeyance

Correct Answer is: equilibrium

Question. For neo-realists the international order is one of________________?

1. total anarchy
2. centralized power
3. full cooperation
4. quasi-anarchy

Correct Answer is: centralized power