PPSC Economics Chapter 10 Most Frequently Asked Economics MCQS With Answers

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PPSC Economics Chapter 10 Most Frequently Asked Economics MCQS

Sr. # Questions Answers Choice
1 The multiplier for a change in social security benefits is equl to the multiplier for a change in the same direction in salaries of Evanston police officers tiems. the marginal propensity to save Minus the marginal propensity to save The marginal propensity to consume Minus the marginal propensity to consume
2 Which provides the best explanation of the failure of many poor countries to experience economic growth as rapid as the rich countries.. Classical growth theory Neoclassical growth theory New growth theory Market failure
3 Depreciation is. A decrease in the stock of capital Gross investment Net investment An increases in the stock of capital
4 Which of the following NOT a source of economic growth. Investment in new capitals Labor productivity Investment in human capital Technology advances
5 Productivity can grow. If capital per hour of labor increases. If there are no technological advances. If capital per hour of labor decreases If real GDP per hour labor decrease and capital per hour of labor increases.
6 The productivity curve Is given by the labor productively Shows the change in real GDP per hour of labor as the amount of capital per hour labor changes Shows the change in technology Is given by the equation Y = F ( L,K, T)
7 A decrease in lump sum taxes is an examples of. Contractionary fiscal policy Expansionary fiscal policy A change in induced taxes A and c
8 the difference between actual and planned expenditure is equal to. X -M M- X Unplanned inventory change Excess reserves of depository institutions.
9 In Balance of payments accounting tourism and travel are classified in the Merchandise trade account Services account Unilateral transfers account Capital account
10 In the short run an increase in the quantity of money ______ real GDP and _ the price level. increases ; raises does not change ; lowers decreases ; raises decrease ; lowers
11 The larger the required reserve ratio the. Smaller is the deposit multiplier Larger is the deposit multitier Larger is the amount of total deposits that can created from a new deposit Larger is the amount of total money that can be created from a withdrawal
12 Your checking account is An asset for you and a liability for your bank A liability for you and an asset for your bank An asset for both you and your bank A liability for both you and your bank
13 According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________ rise ; rise fall ; rise rise ; fall fall ; fall
14 The investment demand curve shifts right ward if The real interest rate falls Savers increase their thriftiness The expected profit rate increases. The economy moves into a recession
15 Accordant the wealth effect , an increase i the price level _______ real wealth and ____ consumption expenditure. Increase, Increases. Increases ; decreases decreases ; increases decreases ; decreases
16 A change in the full employment quantity of labor_________ the short run aggregate supply curve and ______ the long run aggregate supply curve. shifts ; shifts shifts ; does not shift does not shift ; shift does not shift ; does not shift
17 Which of the following is most likely to benefit a debtor. Un anticipated deflation Anticipated deflation Unanticipated inflation anticipated inflation
18 In the cost of slugger rises and slugger is major ingredient in jelly beans then the jelly bean. Demand curve shifts to the left Supply curve shifts to the left Supply curve shifts to the right Demand and supply curves both shift to the right
19 an more labor is added to a fixed amount of input the rate at which output goes up begins to decrease This is called. Diminishing marginal utility Diminishing marginal productivity Diminishing marginal costs Diminishing marginal profit
20 A politician proposes reducing business taxes, a move she says will encourage risk taking entrepreneurship This proposed cut in business taxes is intended to stimulate the economy mainly though. An increase in aggregate supply<hr id="null"> A decrease in aggregate supply A decrease in aggregate demand An increase in aggregate demand
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