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

00:00
Question # 1

The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.

Question # 2

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

Question # 3

In the short run, the supply of capital is _______ and in the long run iwll depend on.

Question # 4

the Maastricht criteria for entry to the EMU are that applicants should have

Question # 5

The key issues of macroeconomics are

Question # 6

Potential output can be increased by _________ or by_________

Question # 7

Market failure may arise because of.

Question # 8

A competitive equilibrium is Pareto efficient because.

Question # 9

An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others

Question # 10

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

Question # 11

A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.

Question # 12

The total multiplier for the economy will reflect.

Question # 13

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

Question # 14

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

Question # 15

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

Question # 16

A profit maximizing firm will hire labor until _______ equal the

Question # 17

In a free market

Question # 18

Higher export demand _______ output and a higher MPZ______ output..

Question # 19

Real business cycle are cycles in

Question # 20

The Philips curve shows the trade off between ________ and _____

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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 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 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
3 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
4 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
5 Real GNP measures income
A. Including non market activities
B. Adjusted for inflation
C. Including externalities
D. Including tax evasion
6 Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.
A. Current account
B. Interest rate
C. Tax
D. Price
7 Aggregate demand without a foreign sector is the sum of.
A. c+1
B. C+G
C. 1+G
D. C+!+G
8 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.
9 A tariff causes domestic firms to __________ and consumers to
A. Overproduced, under consume
B. overproduce , overconsume
C. Underproduce, under consume
D. underproduce, overconsume
10 In linear consumption function with a positive slope less that on means that if income increase, consumption will.
A. Fall
B. Not change
C. Fluctuate
D. Increase

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