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

Economics assumes that people consume goods and services to achieve.

Question # 2

For given government spending and taxation the government budget deficit will grow in __________ and decline in _________

Question # 3

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

Question # 4

Floating exchange rates are __ in the short run

Question # 5

Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.

Question # 6

Efficiency wages are_______ that raise

Question # 7

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

Question # 8

A competitive equilibrium is Pareto efficient because.

Question # 9

Nominal GNP measures income

Question # 10

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

Question # 11

A good example of a public good is.

Question # 12

The retail price index is used to.

Question # 13

In an open economy leakages to imports ______ the value of the multiplier.

Question # 14

Fiscal policy is weak under floating exchange rates as fiscal expansion.

Question # 15

When we know the quantity of a product that buyers wish to purchases at each possible price we know.

Question # 16

If one country, with floating exchange states, has higher inflation than its competitors, we would expect its exchange rate to.

Question # 17

Normative economics form ______ based on.

Question # 18

M4 is a _________ measures of money and includes deposits at both _____________ and

Question # 19

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 # 20

We cannot say whether one allocation of resources is better than another allocation because.

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11th Chapter

PPSC Economics Chapter 11 Test

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Sr.# Question Answer
1 The most important source of wage differentiate are.
A. Reginal variation
B. Unionization
C. Relative danger
D. Skills
2 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.
A. Rise
B. fall
C. not changes
D. fluctuate
3 By restricting labour supply a trade union can _________ and_______
A. Increase the wage, increase employment
B. Maintain the wage, increase employment
C. Increase the wage lower employment
D. Maintain the wage, lower employment
4 If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of.
A. a nonlinear relationship
B. A positive linear relationship
C. A scatter diagram
D. A negative linear relationship
5 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
6 The business cycle is not transmitted from one country to another through.
A. Private sector imports and exports
B. Economic policy
C. The duration of compulsory education
D. Labour supply changes
7 Perfect price discrimination means that every customer.
A. Buys the same amount
B. Pays the same price
C. Pays what she thinks the product is worth
D. Contributes the same revenue.
8 The primary function of a bank is to.
A. Control the money supply
B. Provide notes and coins for trade
C. Make a profit
D. Provide a chequeen clearing system.
9 When the level of income _______ there will be atendency for the trade balance to improve as imports.
A. Increases, increase
B. falls, fall
C. Increase, fall
D. fall , increase
10 Economic growth may depend upon __________ and_________
A.
Population size , x -efficiency
B. Population age distribution, education
C. Population growth, education
D. Population growth, technical progress

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