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

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PPSC Economics Topic 11 Assess Your Basics

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Question # 1

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

Question # 2

If banks and the private sector decide to hold less cash the money multiplier will be.

Question # 3

The prisoners Dilemma Game demonstrates that.

Question # 4

We cannot say whether one allocation of resources is better than another allocation because.

Question # 5

A competitive firm produces a level of output at which.

Question # 6

The multiplier is calculated as.

Question # 7

The extra utility from consuming one more unit of a good is called.

Question # 8

The impossibility of negative gross investment provides a______ to fluctuations in.

Question # 9

If a person thinks they are better off after a 10% wage increase, and all prices have risen 10%, then they are experiencing.

Question # 10

If a long average cost rises, output rises from left to right this is an example of.

Question # 11

International difference in opportunity costs lead to countries acquiring.

Question # 12

An upward shift in marginal cost ___________ output and an upward shift in _____ marginal revenue __ output.

Question # 13

If the government increase spending and raises taxes by just enough to finance the increase it will.

Question # 14

the Maastricht criteria for entry to the EMU are that applicants should have

Question # 15

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

Question # 16

At the intersection of AD and AS equilibrium is achieved in.

Question # 17

Higher export demand _______ output and a higher MPZ______ output..

Question # 18

The business cycle is not transmitted from one country to another through.

Question # 19

Economic transition involves high inflation because ______ and _____

Question # 20

The most important source of wage differentiate are.

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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 In an open economy leakages to imports ______ the value of the multiplier.
A. Reduce
B. Increase
C. do not change
D. None of these
2 A supply curve is directly affected by
A. Technology
B. Input costs
C.
Government regulation
D. All of the above
3 The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.
A. Reduce, reduce
B. increase, increase
C. Increase , reduce
D. reduce, increase
4 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
5 The retail price index is used to.
A. Construct price lists
B. Compare shop prices
C. Measure changes in the cost of living
D. None of the above
6 Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.
A. Move into surplus
B. Move into deficit
C. Remain unchanged
D. None of these
7 Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.
A. Depreciation
B. Appreciation
C. fall
D. Devaluation
8 The costs of inflation are
A. Shoe leather costs
B. Menu costs
C. Income redistribution
D. All of the above
9 The opportunity cost of acquiring education is.
A. Course fees
B. Course fees and living expenses
C. The earning foregone
D. Course fees, living expenses and textbooks
10 All of the following are parts of the business cycle except.
A. Boom
B. slump
C. Recovery
D. Acceleration

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