PPSC Economics Topic 11 MCQS Test Preparation

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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

Economics is the study of

Question # 2

Government may contribute to inflationary pressure on account of building up large.

Question # 3

Bank create money by

Question # 4

Injection into the circular flow are _________ and _______

Question # 5

The price elasticity of demand measures

Question # 6

The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.

Question # 7

A monopoly may be self perpetuating because profits may be used for

Question # 8

Market failure may arise because of.

Question # 9

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 # 10

The participation rate in the labour force is affected by

Question # 11

If two firms doing the same thing in the same industry join together this is known as a.

Question # 12

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.

Question # 13

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

Question # 14

The value of an asset depends upon

Question # 15

The multiplier accelerator model assumes _______ depends on.

Question # 16

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

Question # 17

Economics assumes that people consume goods and services to achieve.

Question # 18

International specialization takes place because of.

Question # 19

All of the following are type of monetary policy except

Question # 20

Economic transition involves high inflation because ______ 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 Leakages from the circular flow are____ and _____
A. Investment savings, government expenditure
B. Saving , taxes net of subsidies, imports
C. Consumption, investment , government expenditure.
D. Consumption, taxes, impports
2 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
3 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
4 An upward shift in marginal cost ___________ output and an upward shift in _____ marginal revenue __ output.
A. Reduce , reduce
B. Reduce , increase
C. Increased, increased
D. Increases, reduces
5 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
6 Moral Hazard means that the act of insuring __________ that the desired outcome will occur.
A. Reduces the likelihood
B. Increase the likelihood
C. Guarantees
D. None of the above
7 The most important source of wage differentiate are.
A. Reginal variation
B. Unionization
C. Relative danger
D. Skills
8 The abolition of income tax would probably ________ the number of workers in employment and____________ the equilibrium. rate of unemployment.
A. increase ; decrease
B. increase ; increase
C. reduce ; increase
D. reduce ; reduce
9 The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____
A. capital widening, technical innovation
B. Capital widening, catch up in technology
C. Capital deepening, technical innovation
D. Capital deepening, catch up technology.
10 A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.
A. Enhances
B. Undermines
C. Encourages
D. Facilitates

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