Question # 1

Money must fulfill all of the following functions except.

Choose an answer

Be a medium of exchange

Be a store of value

Be generally accepted as a means of purchasing commodities

The above are all functions of money

A model in which individual producers act as price setters because there are only a few sellers and the product they sell is not standardized, is called.

Choose an answer

Imperfect competition

Perfect competition

Monopoly

Monopsony

Which of the following results in an increase in the value of the dollar.

Choose an answer

Interest rates n the united states decrees, ceteris paribus

Interest rates in foreign countries increase, ceteris paribus

Price level in the United States increases, ceteris paribus

Productivity in the united states increases, ceteris paribus

If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.

Choose an answer

A value less than 1.4

3.33

1.48

3.03

Given the data above, the empirical equation for the IS curve is.

Choose an answer

Y = 275 + 10 i

Y = 225 + 50 i

Y = 250 - 10 i

Y = 275 - 501

An increase in total production causes the demand for money to _____ and the interest rate to ______

Choose an answer

Increase ; increase

Increase ; decrease

decrease ; decrease

decrease,; increase

What adjusts to restore general equilibrium after a shock to the economy.

Choose an answer

The LM curve

The IS curve

The FE line

The labor supply curve

When all markets in the economy are simultaneously in equilibrium we say.

Choose an answer

Markets are complete

Markets are perfect

There is disequilibrium

There is general equilibrium.

If the federal reserve whishes to increase the money supply, it should

Choose an answer

Raise the reserve requirement

Raise the discount rate

Buy Treasury securities in the open the market

All of the above

An increase in autonomous net exports

Choose an answer

Shifts IS rightward by k, ox

shifts IS left eard by k, AX

Increase the slope of IS

Decreases the slope of IS

Economics is the science of Wealth who gave this definition.

Choose an answer

J-x Mehta

Marshall

Adam Smith

Robbins

Fractional unemployment arises when

Choose an answer

Unskilled or low skilled workers find it difficult to obtain desirable long term jobs

Labor must be reallocated from industries that are shrinking to areas that are growing.

Workers must search for suitable jobs and firms must search for suitable workers.

Output and employment are below full employment levels

A disadvantage of the barter system is that

Choose an answer

No trade occurs

People must produce all their own food clothing and shelter

The opportunity to specialize is greatly reduced.

Gold is the only unit of account

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

Choose an answer

A.W Philips

Edmund phelps

Milton Friedman

Robert Gordon

A situation in which expansionary in monetary policy has no effect on the economy is known as.

Choose an answer

Macro economic stabilization

A liquidity trap

A depression

Capital flight

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the.

Choose an answer

Real interest rate

Productivity relation

Production function

Marginal product

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

Choose an answer

(C+I+G) is shifting upward

(C+I+G) is shifting downward

(C+I+G) does not shift

All of these

A beneficial supply shock would cause.

Choose an answer

A movement up the short run Phillips

a movement down the short run Phillips curve

The short run Phillips curve to shift upward and to the rights

The short run Phillips curve to shift down ward and to the left

A Rs.10 increase in autonomous investment spending shifts is.

Choose an answer

Rightward by Rs. 10

Leftwards by Rs. 10

Rightward by Ke (Rs.10)

Leftward y Ke (Rs.10)

In the Keynesian model in the long run an increase in the money supply will raise

Choose an answer

The price level but not the level of output

The level of output but not the price level

Both the level of output and the price level

Neither the level of output nor the price level

When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.

Choose an answer

Is unrelated to the rate of interest

Is positively related to the rate or interest

Inversely related to the rate of interest

Falls as the rate of interest decreases

More Classes

Other Links

PPSC Economics Chapter 3 Macro Economics 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