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

00:00
Question # 1

When investment is assumed to autonomous the slope of the AD schedule is determined by the.

Question # 2

Potential output can be increased by _________ or by_________

Question # 3

The total multiplier for the economy will reflect.

Question # 4

Economics is the study of

Question # 5

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

Question # 6

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

Question # 7

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

Question # 8

Short run equilibrium output means that aggregate demand _ actual output

Question # 9

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

Question # 10

A current account deficit means that a country may.

Question # 11

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

Question # 12

A competitive firms demand curve is.

Question # 13

Land will be allocated between competing uses so that.

Question # 14

Efficiency wages are_______ that raise

Question # 15

The business cycle describes fluctuations in output around the.

Question # 16

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

Question # 17

Bank create money by

Question # 18

The equilibrium inflation rate is determine by the intersection of __________ and ___

Question # 19

Marginal revenue is the ________ when output is.

Question # 20

The firms long run output decision will be where.

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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 If a price increase of good A increases the quantity demanded of good B, then good B is a.
A. substitute good
B. Complementary good
C. Bargain
D. Interior good
2 Moral Hazard means that the act of insuring __________ that the desired outcome will occur.
A. Reduces the likelihood
B. Increase the likelihood
C. Guarantees
D. None of the above
3 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
4 The business cycle is not transmitted from one country to another through.
A. Private sector imports and exports
B. Economic policy
C. The duration of compulsory education
D. Labour supply changes
5 Economic growth may depend upon __________ and_________
A.
Population size , x -efficiency
B. Population age distribution, education
C. Population growth, education
D. Population growth, technical progress
6 M4 is a _________ measures of money and includes deposits at both _____________ and
A. Narrow, banks, building societies
B. Wide, banks, insurance companies
C. narrow, banks, insurance companies
D. Wide, banks, building societies.
7 In a free market
A. Government intervene
B. Government plan production
C. Government interfere
D. Price adjust to reconcile scarcity and desires.
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 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
10 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

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