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

A current account deficit means that a country may.

Question # 2

The AD schedule indicates that______ inflation is associated with______ output.

Question # 3

The total multiplier for the economy will reflect.

Question # 4

Bank create money by

Question # 5

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

Question # 6

Top footballers land to earn more than lecturers because.

Question # 7

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

Question # 8

The most important source of wage differentiate are.

Question # 9

In the economy when a steel producer sells steel to car producer it is regarded as.

Question # 10

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

Question # 11

The opportunity cost of a student is.

Question # 12

The abolition of income tax would probably ________ the number of workers in employment and____________ the equilibrium. rate of unemployment.

Question # 13

If some body is prepared to work at the going wage rate but cannot find work than they are victims of.

Question # 14

The participation rate in the labour force is affected by

Question # 15

When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.

Question # 16

If the consumption of a good by one person does not reduce the quantity available by other and nobody cna be easily excluded from consumption, we are referring to a.

Question # 17

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

Question # 18

If a price increase of good A increases the quantity demanded of good B, then good B is a.

Question # 19

The retail price index is used to.

Question # 20

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

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Topic Test

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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 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
2 A straight line diagram can be drawn knowing the _______ and _____
A. Vertical axis and horizontal axis
B. Intercept and slope
C. Scale and slope
D. Intercept and scale.
3 A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.
A. Enhances
B. Undermines
C. Encourages
D. Facilitates
4 A firm that breaks even after all economic costs are paid is earning.
A. Economic profit
B. Accounting profit
C. Normal profit
D. Supernormal profit
5 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.
6 The total multiplier for the economy will reflect.
A. MPC and MPT
B. MPT and MPZ
C. MPC and MPZ
D. MPC, MPT and MPZ
7 Satellite television subscription and television detection devices are ways in which broadcasting companies address the _____ problem.
A. Externality
B. Market imperfection
C. Deadweight burden
D. Free rider
8 For perfect competition ot work there must be
A. Many buyers and sellers
B. A standard product
C. Free entry and exit
D. All of the above
9 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
10 A monopoly may be self perpetuating because profits may be used for
A. research
B. Cost saving
C. Technical advance
D. All of the above

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