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

Short run equilibrium output means that aggregate demand _ actual output

Question # 2

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

Question # 3

In a competitive industry each buyer and seller.

Question # 4

The value of an asset depends upon

Question # 5

In linear consumption function with a positive slope less that on means that if income increase, consumption will.

Question # 6

If your income doubles and the prices of the goods you buy double, then your demand for these goods will likely

Question # 7

Leakages from the circular flow are____ and _____

Question # 8

Skilled labour is relatively scarce because.

Question # 9

A profit maximizing firm will hire labor until _______ equal the

Question # 10

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

Question # 11

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

Question # 12

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

Question # 13

Possible causes of involuntary unemployment are

Question # 14

If the MPC is 0.5 the multiplier is

Question # 15

Market failure may arise because of.

Question # 16

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

Question # 17

A market can accuretaly be described as

Question # 18

Injection into the circular flow are _________ and _______

Question # 19

The total multiplier for the economy will reflect.

Question # 20

The price elasticity of demand measures

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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 When real income increases, other things equal we fan expect the demand for real money holdings to.
A. Fall
B. Not change
C. Increase
D. Decrease
2 Satellite television subscription and television detection devices are ways in which broadcasting companies address the _____ problem.
A. Externality
B. Market imperfection
C. Deadweight burden
D. Free rider
3 GDP per head may be an imperfect measure of economic welfare because it excludes.
A. The value of leisure
B. Externalities
C. Untraded goods
D. All of the above
4 A good example of a public good is.
A. Public transport
B. National defense
C. The national health service
D. Rail transport
5 An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others
A. Worse off, worse off
B. better off, better off
C. better off, worse off
D. equal , unequal
6 Real business cycle theorists argue that ___________ can explain short and long term fluctuations in output.
A. Imperfect labour markets
B. Rational expectations
C. Intertemporal decisions of households firms and government.
D. Sun spot cycles
7 At the intersection of AD and AS equilibrium is achieved in.
A. The goods market
B. The money market
C. The labour market
D. All of the above
8 The level of the equilibrium exchange rate offsets international difference in.
A. Comparative advantage
B. Absolute advantage
C. Opportunity cost
D. Relative costs
9 If a country has a burden of debt it cannot sustain it can.
A. Reschedule debt
B. Get a loan from an international organization
C. Default on the loan
D. Any of the above
10 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

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