Economics MCQs For CSS Set 9

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


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


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

1. triad
2. family
3. primary
4. 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


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


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


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


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


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


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

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


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


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


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