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

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

Question # 2

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

Question # 3

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

Question # 4

In Nash equilibrium each player chooses the best strategy.

Question # 5

Polices to reduce unemployment by reducing union power tax cut reduction is unemployment benefit and investment. subsidies are examples of.

Question # 6

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

Question # 7

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

Question # 8

Output fell sharply in the transition economies because.

Question # 9

The imposition of a tariff causes consumption to _______ and imports to.

Question # 10

Efficiency wages are_______ that raise

Question # 11

The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.

Question # 12

Real business cycle theory suggests that __________ not important in explaining short term fluctuations around actual output.

Question # 13

An upward shift in marginal cost ___________ output and an upward shift in _____ marginal revenue __ output.

Question # 14

Real business cycle are cycles in

Question # 15

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

Question # 16

Aggregate demand without a foreign sector is the sum of.

Question # 17

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

Question # 18

The opportunity cost of a good is.

Question # 19

Top footballers land to earn more than lecturers because.

Question # 20

Possible causes of involuntary unemployment are

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Economics
11th Chapter

PPSC Economics Chapter 11 Test

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PPSC Economics Chapter 11 Important MCQ's

Sr.# Question Answer
1 A current account deficit means that a country may.
A. Reduce its stock of foreign assets
B. Increases its stock of foreign assets
C. Increases its savings
D. Increases its foreign currency reserves.
2 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
3 Market some times fall to exist because of.
A. Externalities
B. the free rider problem
C. Poor transport
D. a an b
4 A competitive equilibrium is Pareto efficient because.
A. Producers are price takers
B. Consumers and producer's face the same prices
C. Marginal costs and benefits are equal
D. All of the above
5 In the economy when a steel producer sells steel to car producer it is regarded as.
A. A final good
B. An intermediate good
C. an injection
D. a leakage
6 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
7 Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account.
A. Deficit
B. Surplus
C. Revaluation
D. Devaluation
8 Efficiency wages are_______ that raise
A. Low wages , employment
B. High wages, labor supply
C. High wages, productivity
D. High wages, employment
9 the Maastricht criteria for entry to the EMU are that applicants should have
A. Low inflation
B. Low interest rates
C. Stable nominal exchange rate
D. All of the above
10 Economic transition involves high inflation because ______ and _____
A. High monetary growth, high wages.
B. High budget deficits, devaluation
C. High monetary growth, devaluation
D. Prices surge from an artificially low level to their equilibrium level the inflation tax is required as source of government revenue.

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