PPSC Economics Topic 11 MCQS Test Preparation

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MCQ's Test For PPSC Economics Topic 11 Assess Your Basics

Try The MCQ's Test For PPSC Economics Topic 11 Assess Your Basics

  • Total Questions20

  • Time Allowed20

PPSC Economics Topic 11 Assess Your Basics

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Question # 1

Expansionary fiscal policy in the classical model will cause aggregate demand to ______ potential output.

Question # 2

In a competitive industry each buyer and seller.

Question # 3

When investment is assumed to autonomous the slope of the AD schedule is determined by the.

Question # 4

In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators

Question # 5

Normative economics form ______ based on.

Question # 6

In the UK mergers can be referred to the competition commission of they create a firm with _______ of the market.

Question # 7

An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others

Question # 8

Fiscal policy is weak under floating exchange rates as fiscal expansion.

Question # 9

If a country has a burden of debt it cannot sustain it can.

Question # 10

The opportunity cost of a student is.

Question # 11

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

Question # 12

When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.

Question # 13

Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreasing marginal product of the factor this is an example of.

Question # 14

If as result of householder wish to save more there is a change in equilibrium income and no change in equilibrium saving this as an example of.

Question # 15

Skilled labour is relatively scarce because.

Question # 16

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

Question # 17

An advocate of the classical model of the economy would claim that unemployment a created when the ___________ is above its equilibrium level in the.

Question # 18

If your income during one year is L 10,000 ad the following year it is L,12,000 then it has grown by

Question # 19

In the ERM, each country fixed ___ against each other ERM participant collectively the group._____ against the rest of the world.

Question # 20

A straight line diagram can be drawn knowing the _______ and _____

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11th Chapter

PPSC Economics Chapter 11 Test

Here you can prepare PPSC Economics Chapter 11 (Assess Your Basics) Test. Click the button for 100% free full practice test.

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PPSC Economics Chapter 11 Important MCQ's

Sr.# Question Answer
1 At the intersection of AD and AS equilibrium is achieved in.
A. The goods market
B. The money market
C. The labour market
D. All of the above
2 The imposition of a tariff causes consumption to _______ and imports to.
A. rise , rise
B. fall , rise
C. fall , fall
D. rise , fall
3 A profit maximizing firm will hire labor until _______ equal the
A. Marginal revenue, marginal cost
B. Long run marginal revenue, long run marginal cost
C. Labour output ratio, capital output ratio
D. Marginal cost of labour, marginal revenue product
4 Taxes create a wedge between the sales price and purchase price that prevents the price system equaling _________ and
A. Marginal costs, marginal benefits
B. Demand, supply
C. Marginal cost, marginal revenue
D. Marginal cost, average cost
5 The main cause of different relative costs between countries are.
A. Relative factors competition
B. Relative factor mobility
C. Relative factor substitution
D. Relative factor endowments
6 When investment is assumed to autonomous the slope of the AD schedule is determined by the.
A. Marginal propensity to invest.
B. disposable income
C. Marginal propensity to consume
D. Average properisity to consume
7 The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.
A. Sun spect theory
B. Multiplier accelerator model
C. Solow theory
D. New classical theory
8 The most important source of wage differentiate are.
A. Reginal variation
B. Unionization
C. Relative danger
D. Skills
9 In the UK mergers can be referred to the competition commission of they create a firm with _______ of the market.
A. 15%
B. 20%
C. 25%
D. 30%
10 A fall in investment demand can result from
A. Higher interest rates
B. Lower expected future profits
C. More expensive capital goods
D. All of the above

Test Questions

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