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

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PPSC Economics Topic 11 Assess Your Basics

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Question # 1

The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.

Question # 2

Government may contribute to inflationary pressure on account of building up large.

Question # 3

Within circular flow of income, an increase in domestic income iwll lend to increase.

Question # 4

For perfect competition ot work there must be

Question # 5

If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of.

Question # 6

Short run equilibrium output means that aggregate demand _ actual output

Question # 7

In the short run the level of floating exchange rates is determined mainly by.

Question # 8

A firm that breaks even after all economic costs are paid is earning.

Question # 9

The multiplier accelerator model assumes _______ depends on.

Question # 10

Economic growth may depend upon __________ and_________

Question # 11

Comparing a monopoly and a competitive firm the monopolist will.

Question # 12

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

Question # 13

Moral Hazard means that the act of insuring __________ that the desired outcome will occur.

Question # 14

International specialization takes place because of.

Question # 15

The imposition of a tariff causes consumption to _______ and imports to.

Question # 16

If some body is prepared to work at the going wage rate but cannot find work than they are victims of.

Question # 17

In the circular flow we would expect leakages to __________ injections.

Question # 18

Extremality's arise because there is a divergence between ____ and _

Question # 19

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

Question # 20

An optimal tariff is one which reduces imports to the level at which ___ equals

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Economics
11th Chapter

PPSC Economics Chapter 11 Test

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PPSC Economics Chapter 11 Important MCQ's

Sr.# Question Answer
1 The multiplier is calculated as.
A. 1(1-MPC)
B. 1/MPS
C. 1/MPC
D. a or b
2 If the government increase spending and raises taxes by just enough to finance the increase it will.
A. Leave output unchagned
B. Increase output
C. Reduce output
D. Increase the MPC
3 The imposition of a tariff causes consumption to _______ and imports to.
A. rise , rise
B. fall , rise
C. fall , fall
D. rise , fall
4 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
5 With fixed exchange rates and no private currency flow, when the central bank buys domestic currency the domestic money supply is.
A. Increased
B. Unaffected
C. Reduced
D. All of the above
6 Land will be allocated between competing uses so that.
A. Housing gets priority
B. Industry gets priority
C. Faming gets priority
D. The equilibrium rental rate equilibrium total demand with supply
7 On a graph a positive linear relation ship.
A. Moves down to the right
B. Moves up to the left
C. Moves up to the right
D. Modes down to the left
8 The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____
A. capital widening, technical innovation
B. Capital widening, catch up in technology
C. Capital deepening, technical innovation
D. Capital deepening, catch up technology.
9 All of the following are type of monetary policy except
A. A nominal money stock target
B. A balances budget
C. An inflation target
D. The pursuit of a target real interest rate
10 All of the following are types of imperfect competition except
A. Monopolistic competition
B. Oligopoly
C. Monopoly
D. Unfair competition

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