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

00:00
Question # 1

Normative economics form ______ based on.

Question # 2

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

Question # 3

Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.

Question # 4

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

Question # 5

The allocation of resources is not efficient it

Question # 6

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

Question # 7

When real income increases, other things equal we fan expect the demand for real money holdings to.

Question # 8

Market failure may arise because of.

Question # 9

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

Question # 10

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 # 11

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

Question # 12

A natural monopoly has a declining ________ over a large range of output.

Question # 13

Top footballers land to earn more than lecturers because.

Question # 14

The firms long run output decision will be where.

Question # 15

M4 is a _________ measures of money and includes deposits at both _____________ and

Question # 16

Marginal revenue is the ________ when output is.

Question # 17

Floating exchange rates are __ in the short run

Question # 18

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

Question # 19

The single European Act committed_ governments to a ___ in 1992

Question # 20

Starting from a balanced budget, for a given tax rate an increase in income will cause the government budget to.

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Sr.# Question Answer
1 Floating exchange rates are __ in the short run
A. Stable
B. Volatile
C. Predictable
D. Depreciating
2 Market failure may arise because of.
A. Imperfect competition
B. Taxation
C. Externalities
D. All of the above
3 If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely
A. Increase
B. Not change
C. Decrease
D. Shift
4 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
5 In the short run the level of floating exchange rates is determined mainly by.
A. Interest rates
B. Competitiveness
C. Trade
D. Speculation
6 In an open economy leakages to imports ______ the value of the multiplier.
A. Reduce
B. Increase
C. do not change
D. None of these
7 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.
A. Decreasing returns to scale
B. The law of diminishing returns
C. Constant returns to scale
D. an inefficient production technique
8 In the EMU a country's competitiveness can change because of.
A. Interest rate adjustment
B. Central bank intervention i the forex
C. Domestic wage and price adjustment
D. Devaluations
9 When real income increases, other things equal we fan expect the demand for real money holdings to.
A. Fall
B. Not change
C. Increase
D. Decrease
10 Micro economics is conceded with
A. The economy as a whole
B. The electronics industry
C. The study of individual economic behavior
D. the interactions within the entire economy

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