Question # 1

The allocation of resources is not efficient it

Choose an answer

The marginal cost of production does not equal society marginal benefit

The distribution is inequitable

Economic growth is low

Unemployment is high

The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____

Choose an answer

capital widening, technical innovation

Capital widening, catch up in technology

Capital deepening, technical innovation

Capital deepening, catch up technology.

If one country, with floating exchange states, has higher inflation than its competitors, we would expect its exchange rate to.

Choose an answer

Appreciate

Depreciate

Revalue

be in short supply

The Philips curve shows the trade off between ________ and _____

Choose an answer

The inflation rate, interest rates

The inflation rate, the unemployment rate

interest rates, output

Output, employment

A dominant strategy is.

Choose an answer

A winning strategy

A losing strategy

A players best strategy when moving fist

a player's best strategy whatever the strategies adopted by rivals

Market some times fall to exist because of.

Choose an answer

Externalities

the free rider problem

Poor transport

a an b

In Nash equilibrium each player chooses the best strategy.

Choose an answer

Assuming other players move first.

Dominated by the other players

Given the strategies of other players

That is a credible threat

A reduction in interest rates, causes an increases in the monetary base that result in an_____ in the availability of consumer credit and a _ in the cost of consumer credit.

Choose an answer

Reduction, increases

reduction,reduction

increase, reduction

increases, increases

Perfect price discrimination means that every customer.

Choose an answer

Buys the same amount

Pays the same price

Pays what she thinks the product is worth

Contributes the same revenue.

Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.

Choose an answer

Depreciation

Appreciation

fall

Devaluation

A good example of a public good is.

Choose an answer

Public transport

National defense

The national health service

Rail transport

Market failure may arise because of.

Choose an answer

Imperfect competition

Taxation

Externalities

All of the above

The Keynesian model is a good guide to ______ behavior and the classical model describes behavior in.

Choose an answer

^{Long run, short run}

Flexible, imperfect markets

Short term , long run

Ong run, imperfect market.

The extra utility from consuming one more unit of a good is called.

Choose an answer

Marginal utility

Additional utility

surplus utility

Bonus utility

Potential output can be increased by _________ or by_________

Choose an answer

Increasing the use of labour, increasing the use of land

Increasing the use of capital, increasing the use of labour

Increasing the use of land, increasing the use of capital

Increasing the use of all inputs technical advances

The business cycle describes fluctuations in output around the.

Choose an answer

Trend path of output

Boom

Recession

Short run fluctuations in output

Women and non whiles on average receive lower comes than white men because.

Choose an answer

They tend to work in relatively unskilled jobs

Educational disadvantage

Firms are reluctant to invest in training

All of the above

Normative economics form ______ based on.

Choose an answer

Positive statements facts

Opinions, personal values

Positive statements values

Opinions facts

The short run Philips curve can shift in response to changes in

Choose an answer

inflationary expectations

Unemployment

The inflation rate

Wage rates

We would normally expect the size of the labour force to be ____ than the number of workers willing to accept job offers at any real wage rate.

Choose an answer

Smaller

Larger

the same size

None of these

Real business cycle theories suggest that _____ to correct departures from the desired growth path.

Choose an answer

There is a role of fiscal policy

There is a role for monetary policy

There is a role for supply side policies

There is no case for stabilizing output over the business cycle.

More Classes

Other Links

PPSC Economics Chapter 11 Assess Your Basics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer