PPSC Senior Subject Specialist Economics 2013 Past Paper for preparation.
In a depression economy along a horizontal aggregate supply curve
A) Wages and prices are continuously falling
B) Wages and prices are “Sticky” downwards
C) Real GDP cannot be increased or decreased
D) Unemployment is relatively low
The simple Keynesian aggregate supply curve Is:
A) Upward-sloping as real GDP Increases
B) Horizontal at GDP levels below full Employment
C) Based on the concept that all unemployment is voluntary
D) Downward-sloping as real GDP increases.
In the simple quantity theory model the value of money is determined by
A) Velocity
B) Employment
C) what money will buy
D) The quantity of inputs
In the aggregate supply curve is horizontal it means that
A) Firms cannot increase output
B) Firm are unwilling to increase output
C) Firms will increase output only if prices rise
D) Firms will increase output at the current price
The equation of Exchange is written
A) MO
B) MP=OV
C) MV=PQ
D) MQ=GDP
Hyper-inflation have one cause
A) Excess demand for wage increases by workers
B) Defence spending
C) Excess monetary growth
D) Wage and price control
E) None of these
Supply-side economists believe reductions in tax rates can
A) Decrease output and lower prices
B) increase output and lower prices
C) Decrease aggregate supply
D) Shift aggregate supply to the left
The economic models are consisted of
A) A statement and Assumption
B) Hypothesis
C) Prediction
D) All of these
The “Invisible hand” refers to
A) Unseen Govt Control of the Economy
B) Intangible goods produced in the Economy
C) The unseen coordination of market economics by the prices-system
D) None of these
Effective price ceiling usually results in
A) Excess Demand
B) Excess Supply
C) A decrease in demand
D) A decrease in supply
Stagflation refers to a situation which is characterized by
A) Deflation and rising unemployment
B) Inflation and Deflation
C) Sustained price rise and rising unemployment
D) None of these
The term normal profit as used in the analysis of Equilibrium of the firm under perfect competitor! Refers to
A) Earning of management
B) Reward of Enterprise
C) Reward of Innovation
D) Residual income of a business
Which of the following oligopoly models is concerned with maximization of Joint Profits?
A) Price leadership model
B) Bertrands model
C) Collusive model
D) Edgerworth model
Which one of the following is also known as plant curves?
A) Long-run Average Cost (LAC) Curves
B) Short Run Average Cost (SAC) Curves
C) Average Variable Cost (AVC) Curves
D) Average Total Cost (ATC) Curves
A significant of property of the Cobb-Douglas production function is that the Elasticity of Substitution between is:
A) Equal to Unity
B) More than Unity
C) Less than Unity
D) Zero
A vertical supply curve parallel to the price axis Implies that the elasticity of supply is
A) Zero
B) Infinity
C) Equal to one
D) Greater than zero but less than unity
The Elasticity of Substitution between two perfect substitutions is.
A) Zero
B) Greater than Zero
C) Less than Infinity
D) Infinity
Who the author of the famous work “Asian Drama” An Enquiry into the causes of poverty of Nations?
A) Paul Streeten
B) Irving Fisher
C) Gumnars Myrdal
D) Kinsley,Davis
Who is the author of “Choice of Techniques”
A) K. N Raj
B) Amartya Sen
C) W .B. redaway
D) J.r. Hams
Capital and Development Planning Is the work of
A) Sukhamoy Chakraborty
B) W.A Lewis
C) A K Dasgupta
D) N. Kaldor
The slope of indifference curve at any point reflects:
A) Income level
B) Prices
C) Utility, level
D) Marginal rate of substitution
The Prisoners dilemma was presented by A.W Tucker
A) 1930
B) 1940
C) 1950
D) 1960
The pay-off matrix show:
A) Possible outcomes
B) Possible benefits
C) Possible losses
D) none of them
In non collusive oligopoly firms enter into :
A) Secret agreements
B) No secret agreement
C) Competition
D) No Competition
In case of Monopoly when total revenue is maximum
A) Mr. Positive
B) Mr. rises
C) Mr falls
D) Mr. zero
In case of complementary goods 10 can be
A) Convex
B) Concave
C) Straight line
D) L-shaped
The Production possibility curve is concerned with
A) Opportunity cost
B) Resources of the Economy
C) General Equilibrium
D) None of them
The Theory of Surplus value is associated with
A) Communism
B) Guild Socialism
C) Socialism
D) Fabian Socialism
Gross domestic production differs from net domestic product by the amount of:
A) Govt. Income from property
B) Net Indirect taxes
C) Consumption of fixed capita
D) Net capital formation
The multiple exchange rates were first employed by
A) Brazil
B) Ecuador
C) Peru
D) Germany
