PPSC Economics Topic 11 MCQS Test Preparation

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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

On a graph a positive linear relation ship.

Question # 2

A dominant strategy is.

Question # 3

The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.

Question # 4

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

Question # 5

In the event of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely.

Question # 6

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

Question # 7

When we know the quantity of a product that buyers wish to purchases at each possible price we know.

Question # 8

All of the following are type of monetary policy except

Question # 9

a demand curve can shift because of changing.

Question # 10

A good example of a public good is.

Question # 11

The cost of using capital services is the

Question # 12

Land will be allocated between competing uses so that.

Question # 13

Market failure may arise because of.

Question # 14

The price elasticity of demand measures

Question # 15

If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from.

Question # 16

A supply curve is directly affected by

Question # 17

Comparing a monopoly and a competitive firm the monopolist will.

Question # 18

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

Question # 19

Economic growth may depend upon __________ and_________

Question # 20

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

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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 Real GNP measures income
A. Including non market activities
B. Adjusted for inflation
C. Including externalities
D. Including tax evasion
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 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.
A. Market imperfection
B. The law of diminishing returns
C. The paradox of thriff
D. Market failure
4 Possible causes of involuntary unemployment are
A. Minimum wage agreements
B. Trade unions
C. Scale economies
D. All of the abvoe
5 LDC's often have a comparative advantage in the production of.
A. Primary products
B. Intermediate products
C. Manufactured products
D. Financial services.
6 The Philips curve shows the trade off between ________ and _____
A. The inflation rate, interest rates
B. The inflation rate, the unemployment rate
C. interest rates, output
D. Output, employment
7 Short run average total costs are equal to the sum of _______ and______
A. Short run opportunity costs, profit
B. Short run average variable costs, profit
C. short run average variable costs, profit.
D. Short run average variable costs short run average fixed costs
8 A rise in the real exchange rate will __ the competitiveness of the domestic economy.
A. Increase
B. reduce
C. do nothing do
D. all of these
9 The imposition of a tariff causes consumption to _______ and imports to.
A. rise , rise
B. fall , rise
C. fall , fall
D. rise , fall
10 In linear consumption function with a positive slope less that on means that if income increase, consumption will.
A. Fall
B. Not change
C. Fluctuate
D. Increase

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