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

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

Question # 2

We would normally expect the size of the labour force to be ____ than the number of workers willing to accept job offers at any real wage rate.

Question # 3

Taxes create a wedge between the sales price and purchase price that prevents the price system equaling _________ and

Question # 4

A firm that breaks even after all economic costs are paid is earning.

Question # 5

GDP per head may be an imperfect measure of economic welfare because it excludes.

Question # 6

The most important source of wage differentiate are.

Question # 7

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

Question # 8

Leakages from the circular flow are____ and _____

Question # 9

In a free market

Question # 10

Normative economics form ______ based on.

Question # 11

Except for taxes to offset ___ taxes are.

Question # 12

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

Question # 13

In the short run, the supply of capital is _______ and in the long run iwll depend on.

Question # 14

Fiscal policy is weak under floating exchange rates as fiscal expansion.

Question # 15

The participation rate in the labour force is affected by

Question # 16

The impossibility of negative gross investment provides a______ to fluctuations in.

Question # 17

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

Question # 18

All of the following are parts of the business cycle except.

Question # 19

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

Question # 20

Moral Hazard means that the act of insuring __________ that the desired outcome will occur.

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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 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
2 In the neoclassical theory of growth a higher saving rate leads to.
A. A higher growth rate
B. A fluctuating growth rate
C. A lower growth rate
D. No change in the growth rate
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.
A. a nonlinear relationship
B. A positive linear relationship
C. A scatter diagram
D. A negative linear relationship
4 Real business cycle are cycles in
A. Potential output
B. Actual output
C. Real output
D. International trade
5 The participation rate in the labour force is affected by
A. Higher real wages
B. Lower fixed costs of working
C. Lower non labor income
D. All of the above
6 Bank create money by
A. Printing it
B. Issuing debit cards
C. Accepting chequeens
D. Lending out part of their deposits
7 When capital mobility is perfect, interest rate differentials will tend to be offset by
A. Price differences.
B. Balance of payments differences.
C. Current account differences.
D. Expected exchange rate changes
8 By restricting labour supply a trade union can _________ and_______
A. Increase the wage, increase employment
B. Maintain the wage, increase employment
C. Increase the wage lower employment
D. Maintain the wage, lower employment
9 Real business cycle theories suggest that _____ to correct departures from the desired growth path.
A. There is a role of fiscal policy
B. There is a role for monetary policy
C. There is a role for supply side policies
D. There is no case for stabilizing output over the business cycle.
10 The neoclassical theory of growth identities the steady state rate of growth as the _________ just sufficient to keep _______ constant while labour grows.
A. Saving investment
B. Capital per person productivity
C. Labour growth , output
D. Investment capital per person

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