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

A fall in investment demand can result from

Question # 2

When capital mobility is perfect, interest rate differentials will tend to be offset by

Question # 3

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 # 4

Aggregate demand in an economy trading internationally with a government sector can be written s.

Question # 5

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

Question # 6

In the circular flow we would expect leakages to __________ injections.

Question # 7

The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.

Question # 8

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

Question # 9

Short run average total costs are equal to the sum of _______ and______

Question # 10

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

Question # 11

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

Question # 12

If my neighbor burns garden waste causing my house to fil with smoke this is an example of.

Question # 13

When the level of income _______ there will be atendency for the trade balance to improve as imports.

Question # 14

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

Question # 15

A competitive equilibrium is Pareto efficient because.

Question # 16

A market can accuretaly be described as

Question # 17

When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.

Question # 18

Skilled labour is relatively scarce because.

Question # 19

The single European Act committed_ governments to a ___ in 1992

Question # 20

Marginal revenue is the ________ when output is.

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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 In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators
A. Money supply targets
B. Income policy
C. Interest rates
D. Inflation targets
2 Injection into the circular flow are _________ and _______
A. Consumption, investment, exports
B. Investment exports, transfer payments
C. Investment government expenditure, exports.
D. Taxes, exports, transfer payments.
3 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.
4 In the short run, the supply of capital is _______ and in the long run iwll depend on.
A. Variable technology
B. Fixed, expectations
C. Fixed, rental rate of capital
D. Variable, interest rates.
5 The increase in total cost when one more units is produced is known as.
A. Marginal cost
B. Opportunity cost
C. Limited cost
D. Average cost
6 In Nash equilibrium each player chooses the best strategy.
A. Assuming other players move first.
B. Dominated by the other players
C. Given the strategies of other players
D. That is a credible threat
7 If desired spending in the economy exceeds income we would expect.
A. House hold to save more
B. Firm to produce less
C. Firms is produce more
D. the MPC to change
8 The multiplier accelerator model assumes _______ depends on.
A. Consumption, expected future profits.
B. Investment, interest rates.
C. Investment expected future profits.
D. Stock building, interest rates.
9 The firms long run output decision will be where.
A. Long run average cost a lowest
B. Marginal revenue equals output
C. Marginal revenue equals long run marginal cost
D. Marginal cost equals output
10 If one country, with floating exchange states, has higher inflation than its competitors, we would expect its exchange rate to.
A. Appreciate
B. Depreciate
C. Revalue
D. be in short supply

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