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

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Question # 1

If British Residents want more French francs to purchases more fresh wine, other things equal than the equilibrium value of the pound against the French farce will.

Question # 2

The firms long run output decision will be where.

Question # 3

A rise in the real exchange rate will __ the competitiveness of the domestic economy.

Question # 4

If a price increase of good A increases the quantity demanded of good B, then good B is a.

Question # 5

Nominal GNP measures income

Question # 6

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

Question # 7

The cost of using capital services is the

Question # 8

The prisoners Dilemma Game demonstrates that.

Question # 9

A competitive firms demand curve is.

Question # 10

Market some times fall to exist because of.

Question # 11

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

Question # 12

Market failure may arise because of.

Question # 13

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

Question # 14

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

Question # 15

The key issues of macroeconomics are

Question # 16

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

Question # 17

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

Question # 18

If the income tax rate changes from 30% to 40% on incomes over L 30,000 and a person's income is l 31,000 then her marginal tax rate is.

Question # 19

In the UK in recent years, union membership has ______ and days of work lost because of strikes has.

Question # 20

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

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11th Chapter

PPSC Economics Chapter 11 Test

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PPSC Economics Chapter 11 Important MCQ's

Sr.# Question Answer
1 Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.
A. Current account
B. Interest rate
C. Tax
D. Price
2 When we refer to the hidden economy we mean unrecorded income owing to.
A. Tax evasion
B. Poor statistics
C. The lags between statistical collection and publication .
D. Smuggling
3 Polices to reduce unemployment by reducing union power tax cut reduction is unemployment benefit and investment. subsidies are examples of.
A. Keynesian polices
B. Supply side policies
C. Monetarist policies
D. Classical policies
4 Marginal revenue is the ________ when output is.
A. Change in average revenue, inversed.
B. change in total revenue, increased by one unit
C. change in average revenue, increased by one unit
D. Change in total revenue, incresed.
5 The equilibrium inflation rate is determine by the intersection of __________ and ___
A. demand, supply
B. IS , LM
C. AD, AS
D. Labour demand, labour supply
6 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
7 The opportunity cost of a student is.
A. Course fees and rent
B. A loan from the bank
C. What the student could have earned in the best job available by not studying.
D. What the student will earn after graduation.
8 Nominal GNP measures income
A. At the present time
B. Corrected for tax changes
C. Corrected for changes in interest rates
D. At current prices
9 The impossibility of negative gross investment provides a______ to fluctuations in.
A. Celling, stock building
B. Celling, capital prices
C. floor , output
D. floor , the capital output ratio
10 The key issues of macroeconomics are
A. Unemployment
B. Inflation
C. Economic growth
D. All of the above

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