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PPSC Economics Chapter 11 Assess Your Basics MCQs With Answers
Question # 1
A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.
Choose an answer
Enhances
Undermines
Encourages
Facilitates
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Question # 2
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
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Question # 3
The total multiplier for the economy will reflect.
Choose an answer
MPC and MPT
MPT and MPZ
MPC and MPZ
MPC, MPT and MPZ
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Question # 4
The multiplier is calculated as.
Choose an answer
1(1-MPC)
1/MPS
1/MPC
a or b
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Question # 5
Satellite television subscription and television detection devices are ways in which broadcasting companies address the _____ problem.
Choose an answer
Externality
Market imperfection
Deadweight burden
Free rider
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Question # 6
All of the following are type of monetary policy except
Choose an answer
A nominal money stock target
A balances budget
An inflation target
The pursuit of a target real interest rate
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Question # 7
Positive cross elasticities suggest that goods are ______ and negative cross elasticities that goods are.
Choose an answer
Substitutes, interior
Normal, complements
Substitutes, complements
Normal , interior
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Question # 8
The retail price index is used to.
Choose an answer
Construct price lists
Compare shop prices
Measure changes in the cost of living
None of the above
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Question # 9
Land will be allocated between competing uses so that.
Choose an answer
Housing gets priority
Industry gets priority
Faming gets priority
The equilibrium rental rate equilibrium total demand with supply
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Question # 10
All of the following represent obstacles to LDC development except.
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Resource scarcity
Low level of investment
Low population
Poor infrastructure
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Question # 11
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
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Question # 12
When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.
Choose an answer
depreciates, appreciates
revalues, devalues
appreciates, deprecates
becomes more expensive, becomes cheaper
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Question # 13
An increase in consumer income will increase demand for a __________ for decrease demand for a.
Choose an answer
Substitute good interior good
Normal good, interior good
Interior good, normal good.
Normal good, complementary good.
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Question # 14
The participation rate in the labour force is affected by
Choose an answer
Higher real wages
Lower fixed costs of working
Lower non labor income
All of the above
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Question # 15
Real GNP measures income
Choose an answer
Including non market activities
Adjusted for inflation
Including externalities
Including tax evasion
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Question # 16
The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.
Choose an answer
Sun spect theory
Multiplier accelerator model
Solow theory
New classical theory
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Question # 17
The abolition of income tax would probably ________ the number of workers in employment and____________ the equilibrium. rate of unemployment.
Choose an answer
increase ; decrease
increase ; increase
reduce ; increase
reduce ; reduce
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Question # 18
For given government spending and taxation the government budget deficit will grow in __________ and decline in _________
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booms, booms
recession, recession
booms, recessions
recessions, booms
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Question # 19
In the short run, the supply of capital is _______ and in the long run iwll depend on.
Choose an answer
Variable technology
Fixed, expectations
Fixed, rental rate of capital
Variable, interest rates.
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Question # 20
Skilled labour is relatively scarce because.
Choose an answer
There are too few teachers
Too few student places in higher education
It is costly to acquire human capital
Teachers salaries are too low
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Question # 21
The opportunity cost of a student is.
Choose an answer
Course fees and rent
A loan from the bank
What the student could have earned in the best job available by not studying.
What the student will earn after graduation.
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Question # 22
In the UK in recent years, union membership has ______ and days of work lost because of strikes has.
Choose an answer
Grown, declined
declined, declined
declined, grown
grown , grown
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