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Instructor/Lecturer Economics PPSC
Punjab Public Service Commission Pakistan
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How do you define own-price elasticity theoretically and empirically?
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5 months ago
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Instructor/Lecturer Economics PPSC
by
Microeconomics
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Elaborate the cross-price elasticity theoretically and empirically
asked
5 months ago
in
Instructor/Lecturer Economics PPSC
by
Microeconomics
0
votes
0
answers
Elaborate the income elasticity theoretically and empirically
asked
5 months ago
in
Instructor/Lecturer Economics PPSC
by
Microeconomics
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votes
0
answers
Explain the macroeconomic outlook of economy of Pakistan and suggest any policy framework for formulation of budget and reducing budget deficit.
asked
5 months ago
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Instructor/Lecturer Economics PPSC
by
Economy of Pakistan
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Differentiate between the exchange rate systems vis-à-vis fixed, flexible and managed floating exchange rate system. Which regime is currently being pursued by Pakistan?
asked
5 months ago
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Instructor/Lecturer Economics PPSC
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Economy of Pakistan
Fani Warraich
ECONOMICS
-
Microeconomics
Who is the father of economics?
A. Adam smith.
B. Robbins.
C. Dr. Keynes.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Macroeconomics distinguishes between the real economy and the
A. Black economy.
B. Monetary economy.
C. Virtual economy.
D. Normative economy.
Fani Warraich
ECONOMICS
-
Macroeconomics
Until the First World War, the prices
A. Showed a procyclical trend.
B. fluctuated up and down with high magnitudes but no trend.
C. Showed a countercyclical trend.
D. Trendless.
Janib Khan
ECONOMICS
-
Microeconomics
The branch of economics that deals with the allocation of resources is called ______.
A. Econometrics.
B. Macroeconomics .
C. Microeconomics.
D. All of these.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following factors does NOT influence the demand for a good?
A. Price of related goods.
B. Income of consumers.
C. Future expectations.
D. Cost of production.
Sumera Nawaz
ECONOMICS
-
Microeconomics
If the demand for a product increases while its supply remains constant, what will happen to the equilibrium price and quantity?
A. Price will decrease and quantity will increase.
B. Price will increase and quantity will decrease.
C. Price and quantity will both increase.
D. Price and quantity will both decrease.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following statements about elasticity of demand is true?
A. Unitary elastic demand indicates that quantity demanded does not change with a change in price.
B. Elastic demand curves are usually steeper than inelastic demand curves.
C. Inelastic demand means consumers are very sensitive to price changes.
D. Elasticity measures the responsiveness of quantity demanded to a change in price.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following events would lead to a decrease in the equilibrium price of oranges?
A. A decrease in consumer income.
B. An increase in the price of apples (a substitute for oranges).
C. A decrease in the number of orange producers.
D. A decrease in the price of orange juice (a complement to oranges).
Sumera Nawaz
ECONOMICS
-
Microeconomics
If demand is perfectly elastic, what is the value of price elasticity of demand?
A. -1.
B. Infinity.
C. 0.
D. 1.
Sumera Nawaz
ECONOMICS
-
Microeconomics
When is the price elasticity of supply perfectly inelastic?
A. When the percentage change in quantity supplied is zero for any change in price.
B. When the quantity supplied is infinitely responsive to changes in price.
C. When the quantity supplied does not change at all in response to a change in price.
D. When the price remains constant regardless of changes in quantity supplied.
Sumera Nawaz
ECONOMICS
-
Microeconomics
If both supply and demand increase but the increase in supply is larger, what will happen to equilibrium price and quantity?
A. Price and quantity will both increase.
B. Price and quantity will both decrease.
C. Price will decrease and quantity will increase.
D. Price will increase and quantity will decrease.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following is an example of a substitute good?
A. Peanut butter and jelly.
B. Tea and coffee.
C. Butter and margarine.
D. Butter and bread.
Sumera Nawaz
ECONOMICS
-
Microeconomics
Which of the following would lead to a rightward shift of the supply curve?
A. Improvement in technology.
B. Increase in production costs.
C. Increase in the price of a complementary good.
D. Increase in the number of suppliers.
Sumera Nawaz
ECONOMICS
-
Microeconomics
If the price elasticity of demand for a good is less than 1, the demand is considered
A. Elastic.
B. Unitary elastic.
C. Inelastic.
D. Perfectly elastic.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following is NOT included in the calculation of Gross Domestic Product (GDP)?
A. Value of intermediate goods used in production.
B. Transfer payments such as social security benefits.
C. Corporate profits earned by multinational companies headquartered in the country.
D. Government spending on public infrastructure.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following measures is used to adjust Gross Domestic Product (GDP) for inflation?
A. Real GDP.
B. Nominal GDP.
C. Gross National Product (GNP).
D. Net Domestic Product (NDP).
Sumera Nawaz
ECONOMICS
-
Macroeconomics
If Gross Domestic Product (GDP) is $10 trillion and Gross National Product (GNP) is $11 trillion, what is the value of net factor income from abroad (NFIA)?
A. $1 trillion.
B. -$1 trillion.
C. Insufficient information to determine.
D. $0 trillion.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following transactions would be included in the calculation of Gross Domestic Product (GDP)?
A. A household purchases a used car from another household.
B. A company produces a new software program for internal use.
C. A government purchases military equipment from a foreign country.
D. A household pays tuition fees for their child's education at a private school.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following is NOT a component of the expenditure approach to calculating Gross Domestic Product (GDP)?
A. Consumption.
B. Investment.
C. Net exports.
D. All of the above are components of the expenditure approach.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
If a country's Gross Domestic Product (GDP) is $500 billion and its population is 100 million, what is the country's GDP per capita?
A. $50,000.
B. $5,000.
C. $5 million.
D. $500.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following is an example of a transfer payment?
A. Corporate profits.
B. Social security benefits.
C. Investment in new machinery.
D. Purchase of stocks and bonds.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
Which of the following is NOT a limitation of Gross Domestic Product (GDP) as a measure of economic welfare?
A. It does not adjust for inflation.
B. It does not include the underground economy.
C. It does not consider non-market activities.
D. It does not account for the distribution of income.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
In the circular flow of income, which sector consists of households?
A. Government sector.
B. Business sector.
C. Financial sector.
D. Household sector.
Sumera Nawaz
ECONOMICS
-
Macroeconomics
If a country's Gross Domestic Product (GDP) is $800 billion and its Gross National Product (GNP) is $750 billion, what is the value of net factor income from abroad (NFIA)?
A. $50 billion.
B. -$50 billion.
C. $0 billion.
D. Insufficient information to determine.
Sumera Nawaz
ECONOMICS
-
Econometrics
What is the primary purpose of using Instrumental Variables (IV) in econometrics?
A. To increase the sample size.
B. To correct for heteroskedasticity.
C. To address endogeneity problems.
D. To estimate time series models.
Sumera Nawaz
ECONOMICS
-
Econometrics
When is the use of a fixed-effects model preferable to a random-effects model in panel data analysis?
A. When the number of cross-sectional units is larger than the number of time periods.
B. When the individual effects are correlated with the explanatory variables.
C. When there is no heterogeneity across cross-sectional units.
D. When the data set is balanced.
Sumera Nawaz
ECONOMICS
-
Econometrics
Which test is commonly used to detect autocorrelation in the residuals of a regression model?
A. Durbin-Watson test.
B. Breusch-Pagan test.
C. Hausman test.
D. Augmented Dickey-Fuller test.
Sumera Nawaz
ECONOMICS
-
Econometrics
Why is multicollinearity a problem in multiple regression analysis?
A. It increases the model's goodness-of-fit.
B. It leads to biased estimates of the regression coefficients.
C. It causes the standard errors of the coefficients to be inflated.
D. It violates the normality assumption of the error terms.
Sumera Nawaz
ECONOMICS
-
Econometrics
How to address heteroskedasticity in a regression model?
A. By increasing the sample size.
B. By using OLS estimators.
C. By transforming the dependent variable.
D. By applying robust standard errors.
Sumera Nawaz
ECONOMICS
-
Managerial Economics
What is the main reason for a firm to engage in price discrimination?
A. To increase production efficiency.
B. To maximize revenue by capturing consumer surplus.
C. To reduce advertising costs.
D. To comply with government regulations.
Sumera Nawaz
ECONOMICS
-
Managerial Economics
When should a firm continue producing in the short run even if it is incurring losses?
A. When fixed costs are greater than variable costs.
B. When total revenue covers variable costs but not fixed costs.
C. When total costs exceed total revenue.
D. When the market price is below average total cost.
Sumera Nawaz
ECONOMICS
-
Managerial Economics
Where is the optimal point of production for a firm operating under perfect competition in the long run?
A. Where marginal cost equals marginal revenue.
B. Where average total cost is minimized.
C. Where marginal cost equals average total cost.
D. Where marginal cost equals average total cost.
Sumera Nawaz
ECONOMICS
-
Managerial Economics
How to determine the profit-maximizing output level for a monopolist?
A. By setting price equal to marginal cost.
B. By equating marginal cost to average total cost.
C. By equating marginal revenue to marginal cost.
D. By setting price equal to average total cost.
Sumera Nawaz
ECONOMICS
-
Managerial Economics
Which factor can lead to economies of scale in production?
A. Increased regulatory compliance costs.
B. Higher input prices due to limited suppliers.
C. Bulk purchasing of raw materials at a discounted rate.
D. Decreased managerial efficiency.
Fani Warraich
ECONOMICS
-
Managerial Economics
Which pricing strategy involves setting a high initial price for a new or innovative product to "skim" segments of the market willing to pay the higher price?
A. Penetration Pricing.
B. Price Skimming.
C. Dynamic Pricing.
D. Cost-Plus Pricing.
Fani Warraich
ECONOMICS
-
Managerial Economics
How to determine the optimal capital structure for a firm according to the Modigliani-Miller theorem without taxes?
A. By minimizing the cost of equity.
B. By maximizing the debt ratio.
C. By ensuring the capital structure does not affect firm value.
D. By balancing equity and debt financing to minimize the weighted average cost of capital (WACC).
Fani Warraich
ECONOMICS
-
Managerial Economics
Why is the kinked demand curve model used in oligopoly markets?
A. To explain the existence of price rigidity.
B. To illustrate price discrimination.
C. To show the effects of economies of scale.
D. To demonstrate product differentiation.
Fani Warraich
ECONOMICS
-
Managerial Economics
What is the primary characteristic of a Nash Equilibrium in game theory?
A. One player dominates the game.
B. Players have no incentive to change their strategies.
C. Total payoff is maximized for all players.
D. All players cooperate to achieve the best outcome.
Fani Warraich
ECONOMICS
-
Managerial Economics
When analyzing a firm's cost structure, what does the term "economies of scope" refer to?
A. Cost savings achieved by increasing production of a single product.
B. Cost advantages obtained by producing a variety of products.
C. The reduction in marginal cost as output increases.
D. The increased cost due to the complexity of producing multiple products.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
What is the estimated percentage of Pakistan's population living below the poverty line, according to the 2022 World Bank report?
A. 12.4%.
B. 18.3%.
C. 23.4%.
D. 29.5%.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
Which of the following industries is the largest contributor to Pakistan's exports, accounting for approximately 60% of total exports?
A. Textile.
B. Food Processing.
C. Pharmaceutical.
D. Automotive.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
What is the name of the flagship program launched by the Government of Pakistan in 2022 to provide subsidized loans to small and medium-sized enterprises (SMEs)?
A. Kamyab Jawan Program.
B. Ehsaas Program.
C. Naya Pakistan Qarza Scheme.
D. Mian Muhammad Nawaz Sharif Youth Business Loan.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
According to the Pakistan Bureau of Statistics (PBS), what is the estimated growth rate of Pakistan's GDP in the fiscal year 2022-23?
A. 3.5%.
B. 4.2%.
C. 5.1%.
D. 6.3%.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
Which international organization has provided the largest amount of foreign assistance to Pakistan in the form of loans and grants, with a total commitment of over $10 billion since 2010?
A. Asian Development Bank.
B. International Monetary Fund.
C. China Development Bank.
D. World Bank.
Fani Warraich
ECONOMICS
-
Macroeconomics
Which of the following is not typically an element in the structural change that accompanies development?
A. Increase in the share of agriculture in GDP (gross domestic product).
B. Increase in manufacturing as a share of GDP.
C. Increase in urbanization.
D. All of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
A supply side vicious circle of poverty suggests that poor nations remain poor because:
A. Saving remains low.
B. Investment remains low.
C. There is a lack of effective government.
D. Both (A) & (B).
Fani Warraich
ECONOMICS
-
Macroeconomics
When the manufacturer of power looms expands, there are forward linkage effects due to:
A. Lost employment in the hand-loom sector.
B. Increased incomes of workers that manufacture looms.
C. Increased output of woven cloth made by the power looms.
D. Increased demand for electric motors.
Fani Warraich
ECONOMICS
-
Macroeconomics
A certain amount of goods and services is necessary for a minimum standard of living. This is called:
A. Basic needs.
B. Absolute poverty.
C. An international standard of living.
D. The concept of development.
Fani Warraich
ECONOMICS
-
Macroeconomics
With perfect income equality the Gini coefficient in a country would be
A. Infinity.
B. 1.
C. 0.5.
D. 0.
Fani Warraich
ECONOMICS
-
Macroeconomics
There are strong theoretical reasons to expect that changes in wealth are responsible for changes in consumption. Nonetheless, one reason that we observe a tight link between consumption and disposable income is:
A. Credit rationing which changes the intertemporal budget constraint for borrowers..
B. Households attempt to smooth their consumption..
C. Household saving provides a buffer between income and expenditure..
D. Ricardian equivalence..
Fani Warraich
ECONOMICS
-
Macroeconomics
The accelerator principle states:
A. If an increase in the growth of output is expected, investment will increase..
B. If an increase in investment is expected, output will increase..
C. If an increase in the growth of investment is expected, output will increase..
D. Small swings in investment are associated with large swings of output..
Fani Warraich
ECONOMICS
-
Macroeconomics
Economic growth measures the:
A. Growth of productivity.
B. Increase in nominal income.
C. Increase in output.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Non-traded goods do not enter measured GDP because:
A. They are intermediate goods.
B. They are not traded in the market.
C. There is no value added in the production of such goods.
D. Their value is not captured by the exchange rate method of conversion to a common unit.
Fani Warraich
ECONOMICS
-
Macroeconomics
The Keynesian assumption is a convenient analytical short cut and turns out to be a rather accurate description of the reality. What does it assume?
A. Constant prices.
B. Firms cannot reduce fix costs.
C. Output is predetermined.
D. The interest rate stimulates growth.
Fani Warraich
ECONOMICS
-
Macroeconomics
What is not a component of the GDP?
A. Consumption goods.
B. Investment spending by firms on capital goods.
C. Public sector's own demand for goods.
D. Employment rate.
Fani Warraich
ECONOMICS
-
Macroeconomics
In short-run macroeconomic analysis, demand is often viewed as the driving force. Which component of total demand is often regarded as being independent of economic conditions and thus exogenous in the model?
A. Consumption and private spending.
B. Investment, saving.
C. Net exports.
D. Government spending and tax receipts.
Fani Warraich
ECONOMICS
-
Macroeconomics
Which kind of demand fluctuates the most?
A. Consumption demand..
B. Private demand for investment..
C. Aggregated demand..
D. Demand by firms for investment goods..
Fani Warraich
ECONOMICS
-
Macroeconomics
It is the _______ interest rate that matters for spending decisions and the _______ interest rate that is relevant when we look at monetary questions.
A. Interbank , Exchange.
B. Exchange , Interbank.
C. Real , Nominal.
D. Nominal , Real.
Fani Warraich
ECONOMICS
-
Macroeconomics
The aggregate production function for the Solow growth model assumes ___________ returns to scale and _____________ marginal productivity of labour and capital.
A. Increasing , Diminishing.
B. Constant , Diminishing.
C. Decreasing , Constant.
D. Constant , Creasing.
Fani Warraich
ECONOMICS
-
Macroeconomics
The labour measure (L) is:
A. The average number of workers employed x average hours worked.
B. The average number of workers (employed + unemployed) x average hours worked.
C. The total number of workers employed x average hours worked.
D. The total number of workers (employed + unemployed) x average hours worked.
Fani Warraich
ECONOMICS
-
Microeconomics
The optimal capital stock is achieved when the user cost of capital is equal to:
A. The interest rate..
B. The depreciation rate..
C. The marginal product of capital..
D. Tobin's q..
Fani Warraich
ECONOMICS
-
Microeconomics
The essence of Engel's law is that as family income rise:
A. The savings rate increases.
B. The proportion of income spent on food declines.
C. Expenditure on food declines.
D. Proportion of income spent on luxuries declines.
Fani Warraich
ECONOMICS
-
Microeconomics
The concept of opportunity cost is based upon the principle of:
A. Need.
B. Consumption.
C. Scarcity.
D. Profit.
Fani Warraich
ECONOMICS
-
Microeconomics
Which of the following is an INCORRECT statement about a budget constraint?
A. Points on a budget constraint represent combinations of the goods that exactly use up income.
B. Points within the budget constraint represent combinations of the goods that do not use up all the income..
C. If points A and B lie on the budget constraint, we can deduce that people will be indifferent between the two.
D. If the price of one good decreases, all else the same, the budget constraint will swivel or rotate outward.
Fani Warraich
ECONOMICS
-
Macroeconomics
Goal 1 of Sustainable Development Goals relates to:
A. Hunger.
B. Economic growth.
C. Education.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Financial Inclusion means:
A. Having a financial account.
B. Using the financial products.
C. Having and using mobile accounts.
D. All of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Gini coefficient is the measure of:
A. Poverty.
B. Inequality.
C. Development.
D. All of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Economic development is measured by:
A. Sustenance.
B. Freedom.
C. Self-esteem.
D. All of these.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
During FY 2022-23, Pakistan?s industrial sector growth rate is:
A. 0.065.
B. -0.0294.
C. -0.1.
D. None of these.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
Pakistan sought ?International Monetary Fund?s Financial Assistance? ________ times in 75 years.
A. 25.
B. 23.
C. 12.
D. None of these.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
Unemployment rate is relatively higher in _______ in Pakistan as per Labor Force Survey 2020-21.
A. Young Adults.
B. Youth.
C. Middle aged.
D. None of these.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
Pakistan?s 1st digital population census was conducted in the year:
A. 2000.
B. 2009.
C. 2023.
D. None of these.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
According to the State Bank of Pakistan (SBP) redefined Act 2022, the primary function of SBP is:
A. Price stability.
B. Treasury management.
C. Exchange rate stability.
D. None of these.
Fani Warraich
ECONOMICS
-
Economy of Pakistan
The CPI inflation for FY 2022-23 is:
A. 0.2.
B. 0.45.
C. 0.293.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Core inflation measures:
A. CPI based inflation.
B. GDP Deflator inflation.
C. WPI inflation.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Okun?s Law defines the relationship between:
A. Unemployment and Inflation.
B. Inflation and Economic growth.
C. Unemployment and GDP growth.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
GDP measures ?all goods and services _________________________ produced in a given year?.
A. Domestically.
B. Nationally.
C. Excluding exports and imports.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
The monetary policy tools are used for:
A. Price stability.
B. Financial stability.
C. Economic growth.
D. All of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Quantity theory of money states that when the quantity of money increases, the value of money:
A. Increases.
B. Declines.
C. Remains the same.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Fiscal and monetary policies are used to:
A. Improve markets.
B. Stabilize the economy.
C. Improve trade deficit.
D. None of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
GNP measures:
A. Total production of nation.
B. Total income of a nation.
C. Total wealth of a nation.
D. Both (A) and (B).
Fani Warraich
ECONOMICS
-
Macroeconomics
In Pakistan, investment as a percentage of GDP is lower than:
A. India.
B. China.
C. Bangladesh.
D. All of these.
Fani Warraich
ECONOMICS
-
Macroeconomics
Economic recession is defined as reduced economic activities and employment levels for at least:
A. Two consecutive quarters.
B. One year.
C. 5 years.
D. None of these.
Contributor(3)
Fani Warraich
Janib Khan
Sumera Nawaz
GOOD