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

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PPSC Economics Topic 11 Assess Your Basics

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Question # 1

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account.

Question # 2

In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators

Question # 3

The short run Philips curve can shift in response to changes in

Question # 4

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

Question # 5

A tariff causes domestic firms to __________ and consumers to

Question # 6

On a graph a positive linear relation ship.

Question # 7

If British Residents want more French francs to purchases more fresh wine, other things equal than the equilibrium value of the pound against the French farce will.

Question # 8

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

Question # 9

The prisoners Dilemma Game demonstrates that.

Question # 10

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

Question # 11

If your income during one year is L 10,000 ad the following year it is L,12,000 then it has grown by

Question # 12

The AD schedule indicates that______ inflation is associated with______ output.

Question # 13

Comparing a monopoly and a competitive firm the monopolist will.

Question # 14

Real GNP is a crude measure of national welfare because it excludes.

Question # 15

Floating exchange rates are __ in the short run

Question # 16

Extremality's arise because there is a divergence between ____ and _

Question # 17

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

Question # 18

The allocation of resources is not efficient it

Question # 19

The main cause of different relative costs between countries are.

Question # 20

In the neoclassical theory of growth a higher saving rate leads to.

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11th Chapter

PPSC Economics Chapter 11 Test

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PPSC Economics Chapter 11 Important MCQ's

Sr.# Question Answer
1 On a graph a positive linear relation ship.
A. Moves down to the right
B. Moves up to the left
C. Moves up to the right
D. Modes down to the left
2 If a firm not operating at the output necessary to achieve al scale economies it has not achieved its.
A. Efficient scale
B. Average efficient scale
C. Maximum efficient scale
D. Minimum efficient scale
3 Adding up the quantities demanded of a good by different people facing the same price gives us the.
A. Supply curve
B. Market demand curve
C. Demand curve
D. Market supply curve
4 If a person thinks they are better off after a 10% wage increase, and all prices have risen 10%, then they are experiencing.
A. Inflation
B. A supply shocks
C. Crowding out
D. Inflation illusion
5 Real GNP is a crude measure of national welfare because it excludes.
A. Consumption
B. Investment
C. Export's
D. work in the home
6 The imposition of a tariff causes consumption to _______ and imports to.
A. rise , rise
B. fall , rise
C. fall , fall
D. rise , fall
7 In the circular flow we would expect leakages to __________ injections.
A. equal
B. be less than
C. by greater than
D. Be less or greater than
8 The multiplier tells us how much __________ chagnes after a shift in.
A. Consumption, income
B. Investment , output
C. Savings, investment
D. output, aggregate demand
9 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
10 During periods of rising inflation and rising interest rates we expect the demand for real cash to.
A. rise
B. fall
C. not change
D. fluctuate

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