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

A fall in investment demand can result from

Question # 2

Monetarists believe that a reduction in _____ can be achieved by reducing.

Question # 3

During periods of rising inflation and rising interest rates we expect the demand for real cash to.

Question # 4

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.

Question # 5

All of the following are benefits of the single market except.

Question # 6

If I keep some money available in case I see a bargain this is an example of.

Question # 7

An increase in consumer income will increase demand for a __________ for decrease demand for a.

Question # 8

A natural monopoly has a declining ________ over a large range of output.

Question # 9

The key issues of macroeconomics are

Question # 10

A production technique is technically efficient if.

Question # 11

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

Question # 12

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

Question # 13

If the central bank buys financial securities in the open market to increase the monetary base, this is an example of.

Question # 14

In the UK under a _________ of the labour force belong to a trade union.

Question # 15

A good example of a public good is.

Question # 16

In Nash equilibrium each player chooses the best strategy.

Question # 17

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 # 18

In the classical model, potential output can not be increased by

Question # 19

The total multiplier for the economy will reflect.

Question # 20

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

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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 Human capital can be described as.
A. The tools used by workers to entrances productivity
B. a persons inherited abilities.
C. The stock of expertise accumulated by a worker
D. Education
2 The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.
A. Prices, wages, output and employment.
B. Output, prices, employment
C. Nominal money, the price level output and employment.
D. Nominal money output prices
3 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
4 In the ERM, each country fixed ___ against each other ERM participant collectively the group._____ against the rest of the world.
A. A nominal exchange rate, floated
B. A real exchange rate, pegged
C. a purchasing power parity, pegged
D. a real exchange rate, floated
5 LDC's often have a comparative advantage in the production of.
A. Primary products
B. Intermediate products
C. Manufactured products
D. Financial services.
6 A fall in investment demand can result from
A. Higher interest rates
B. Lower expected future profits
C. More expensive capital goods
D. All of the above
7 Output fell sharply in the transition economies because.
A. Banks were undoable to function
B. There was little corporate control
C. Vital infrastructure was missing
D. All of the above
8 The retail price index is used to.
A. Construct price lists
B. Compare shop prices
C. Measure changes in the cost of living
D. None of the above
9 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
10 The most important source of wage differentiate are.
A. Reginal variation
B. Unionization
C. Relative danger
D. Skills

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