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

Satellite television subscription and television detection devices are ways in which broadcasting companies address the _____ problem.

Question # 2

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

Question # 3

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 # 4

Skilled labour is relatively scarce because.

Question # 5

Real business cycle theorists argue that ___________ can explain short and long term fluctuations in output.

Question # 6

A tariff causes domestic firms to __________ and consumers to

Question # 7

In the EMU a country's competitiveness can change because of.

Question # 8

A profit maximizing firm will hire labor until _______ equal the

Question # 9

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely

Question # 10

Polices to reduce unemployment by reducing union power tax cut reduction is unemployment benefit and investment. subsidies are examples of.

Question # 11

Women and non whiles on average receive lower comes than white men because.

Question # 12

The participation rate in the labour force is affected by

Question # 13

The level of the equilibrium exchange rate offsets international difference in.

Question # 14

Adding up the quantities demanded of a good by different people facing the same price gives us the.

Question # 15

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

Question # 16

Real GNP is a crude measure of national welfare because it excludes.

Question # 17

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

Question # 18

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 # 19

Economic transition involves high inflation because ______ and _____

Question # 20

Leakages from the circular flow are____ and _____

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Economics
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 All of the following are types of imperfect competition except
A. Monopolistic competition
B. Oligopoly
C. Monopoly
D. Unfair competition
2 If desired spending in the economy exceeds income we would expect.
A. House hold to save more
B. Firm to produce less
C. Firms is produce more
D. the MPC to change
3 The real value can be derived from a nominal value by
A. Adjusting changes over time
B. Adjusting for data collection errors
C. Adjusting for population changes
D. Adjusting for changes in prices
4 The key issues of macroeconomics are
A. Unemployment
B. Inflation
C. Economic growth
D. All of the above
5 Injection into the circular flow are _________ and _______
A. Consumption, investment, exports
B. Investment exports, transfer payments
C. Investment government expenditure, exports.
D. Taxes, exports, transfer payments.
6 Efficiency wages are_______ that raise
A. Low wages , employment
B. High wages, labor supply
C. High wages, productivity
D. High wages, employment
7 A reduction in interest rates, causes an increases in the monetary base that result in an_____ in the availability of consumer credit and a _ in the cost of consumer credit.
A. Reduction, increases
B. reduction,reduction
C. increase, reduction
D. increases, increases
8 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
9 A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.
A. Enhances
B. Undermines
C. Encourages
D. Facilitates
10 If banks and the private sector decide to hold less cash the money multiplier will be.
A. Unchanged
B. Larger
C. Smaller
D. unstable

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