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

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PPSC Economics Topic 11 Assess Your Basics

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Question # 1

Within circular flow of income, an increase in domestic income iwll lend to increase.

Question # 2

A fall in investment demand can result from

Question # 3

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 # 4

A reduction in interest rates, causes an increases in the monetary base that result in an_____ in the availability of consumer credit and a _ in the cost of consumer credit.

Question # 5

Macro economics is the study of.

Question # 6

Perfect price discrimination means that every customer.

Question # 7

The multiplier tells us how much __________ chagnes after a shift in.

Question # 8

All of the following are benefits of the single market except.

Question # 9

If a country has a burden of debt it cannot sustain it can.

Question # 10

Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.

Question # 11

The price elasticity of demand measures

Question # 12

In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators

Question # 13

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

Question # 14

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

Question # 15

At the intersection of AD and AS equilibrium is achieved in.

Question # 16

Economics assumes that people consume goods and services to achieve.

Question # 17

The opportunity cost of a good is.

Question # 18

Marginal revenue is the ________ when output is.

Question # 19

When a market is contestable , incumbent firms must.________ to avoid the entry of new competitors.

Question # 20

Skilled labour is relatively scarce because.

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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 A reduction in interest rates, causes an increases in the monetary base that result in an_____ in the availability of consumer credit and a _ in the cost of consumer credit.
A. Reduction, increases
B. reduction,reduction
C. increase, reduction
D. increases, increases
2 The opportunity cost of a student is.
A. Course fees and rent
B. A loan from the bank
C. What the student could have earned in the best job available by not studying.
D. What the student will earn after graduation.
3 If a price increase of good A increases the quantity demanded of good B, then good B is a.
A. substitute good
B. Complementary good
C. Bargain
D. Interior good
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 In the EMU a country's competitiveness can change because of.
A. Interest rate adjustment
B. Central bank intervention i the forex
C. Domestic wage and price adjustment
D. Devaluations
6 Within circular flow of income, an increase in domestic income iwll lend to increase.
A. Exports
B. Taxes
C. Inventories
D. Imports
7 The Keynesian model is a good guide to ______ behavior and the classical model describes behavior in.
A. Long run, short run
B. Flexible, imperfect markets
C.
Short term , long run
D. Ong run, imperfect market.
8 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
9 LDC's often have a comparative advantage in the production of.
A. Primary products
B. Intermediate products
C. Manufactured products
D. Financial services.
10 The long run Philips curve is _________ at the ______
A. Horizontal natural rate of inflation
B. Horizontal , natural rate of unemployment
C. Vertical , natural rte of inflation
D. Vertical , equilibrium rate of unemployment.

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