PPSC Economics Chapter 1 Basic Economics With Answers

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PPSC Economics Chapter 1 Basic Economics

Sr. # Questions Answers Choice
1 Aggregate demand will increase if Consumption falls Investment falls Exports fall imports fall
2 When an economy first begins to frow more slowly. GDP increase Inflation is likely to increase Stock levels are likely to increse Investment in equipment is likely to increase
3 To anticipate what the economy is going to do next the government will look at. Lagging indicators Flashing indicators Coincidental iindicators Leading indicators
4 The socially optimal rate of growth is Zero Negative Where the marginal social benefit the marginal social cost total social costs are minimized
5 Economics growth can be seen by an outward shift of. The production possibility frontier The gross domestic barrier The marginal consumption frontier The Minimum Efficient scale
6 Labour productivity measures. The output per worker The output per machine Total output Marginal output
7 If labour productivity per week is 200 units and there are 5 employees what is the total output. 40 units 195 units 1000 units 200 units
8 In a recession, GDP. Grows negatively Grows by 0% Grows slowly Grows rapidly
9 Economic growth can be measured by The CPI The CBI GDP MPC
10 A higher GDP per capita may not mean that the quality of life has really improved because. It measures wealth not income It measures Gross Domestic product It does not measure the quality of the items produced it is only measured every five years
11 In a recession a government. Is likely to want to increase demand in the economy Is likely to want to decrease demand in the economy Is likely to want to stabilize demand in the economy Is likely to want to increase supply in the economy
12 To adjust from gross National Product to Net National Product Deduct deprecation Deduct indirect taxes Deduct subsidies Add inflation
13 To adjust GDP from market prices to factor cost. Add indirect taxes Subtract subsidies Deduct indirect taxes and subsides Deduct indirect taxes and add subsides
14 GDP plus net property income from aboard equals what. GNP NNP Depreciation Real GDP
15 In a Boom Surpluses are likely to occur Prices are likely to fall supply will increase immediately to match demand Shortages may occur
16 In a recession Unemployment is likely to be low prices are likely to increase Growth is negative Growth is slow
17 The standard of living is often measured by Real GDP per capita Real GDP Real GDP * Population Real GDP Plus depreciation
18 Gross National product equals Net National Product adjusted for inflation Gross domestic product adjusted for inflation Gross Domestic product plus net property income from abroad Net National product plus net property income from abroad
19 Which of the following is an injection into the economy. Investment Saving Taxation Import spending
20 A reflationary policy Increases aggregate supply Increases aggregate demand Decreases the price level Increase full employment
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