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 some body is prepared to work at the going wage rate but cannot find work than they are victims of.

Question # 2

The allocation of resources is not efficient it

Question # 3

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

Question # 4

LDC's often have a comparative advantage in the production of.

Question # 5

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

Question # 6

Real business cycle theories suggest that _____ to correct departures from the desired growth path.

Question # 7

In Nash equilibrium each player chooses the best strategy.

Question # 8

At the intersection of AD and AS equilibrium is achieved in.

Question # 9

The retail price index is used to.

Question # 10

The increase in total cost when one more units is produced is known as.

Question # 11

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

Question # 12

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

Question # 13

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

Question # 14

For perfect competition ot work there must be

Question # 15

If desired spending in the economy exceeds income we would expect.

Question # 16

The most important source of wage differentiate are.

Question # 17

One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.

Question # 18

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

Question # 19

If a firm not operating at the output necessary to achieve al scale economies it has not achieved its.

Question # 20

International difference in opportunity costs lead to countries acquiring.

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Topic Test

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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 The total multiplier for the economy will reflect.
A. MPC and MPT
B. MPT and MPZ
C. MPC and MPZ
D. MPC, MPT and MPZ
2 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
3 Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.
A. Current account
B. Interest rate
C. Tax
D. Price
4 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
5 When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.
A. depreciates, appreciates
B. revalues, devalues
C. appreciates, deprecates
D. becomes more expensive, becomes cheaper
6 In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.
A. Selling, increase
B. buying , increase
C. selling, reduce
D. both b and c
7 Aggregate demand in an economy trading internationally with a government sector can be written s.
A. AD = C+1
B. AD = C + 1+ G
C. AD = C +1+G+X+Z
D. AD+C+1+G+X-Z
8 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
9 Expansionary fiscal policy in the classical model will cause aggregate demand to ______ potential output.
A. Exceed
B. Fall below
C. Fluclaute around
D. Remain equal to.
10 A competitive firms demand curve is.
A. Horizontal
B. Vertical
C. Down ward sloping
D. Fairly elastic

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