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

If both Marginal cost and marginal revenue increase, a firm.

Question # 2

Marginal revenue is the ________ when output is.

Question # 3

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

Question # 4

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

Question # 5

Output fell sharply in the transition economies because.

Question # 6

The increase in total cost when one more units is produced is known as.

Question # 7

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

Question # 8

Skilled labour is relatively scarce because.

Question # 9

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 # 10

If the MPC is 0.5 the multiplier is

Question # 11

The primary function of a bank is to.

Question # 12

The retail price index is used to.

Question # 13

Injection into the circular flow are _________ and _______

Question # 14

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 # 15

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

Question # 16

Monetarists believe that a reduction in _____ can be achieved by reducing.

Question # 17

If my neighbor burns garden waste causing my house to fil with smoke this is an example of.

Question # 18

Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.

Question # 19

Market failure may arise because of.

Question # 20

The short run Philips curve can shift in response to changes in

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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 One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.
A. rise, increases, increases
B. rise, falls, increases
C. rise, increases, falls
D. rise, falls, falls
2 A tariff causes domestic firms to __________ and consumers to
A. Overproduced, under consume
B. overproduce , overconsume
C. Underproduce, under consume
D. underproduce, overconsume
3 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
4 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
5 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
6 The main cause of different relative costs between countries are.
A. Relative factors competition
B. Relative factor mobility
C. Relative factor substitution
D. Relative factor endowments
7 When capital mobility is perfect, interest rate differentials will tend to be offset by
A. Price differences.
B. Balance of payments differences.
C. Current account differences.
D. Expected exchange rate changes
8 An advocate of the classical model of the economy would claim that unemployment a created when the ___________ is above its equilibrium level in the.
A. Price level, agregate economy
B. Tax rate, government ebudget
C. Wage rate, labour market
D. Interest rate, market for loanable funds
9 In the neoclassical theory of growth a higher saving rate leads to.
A. A higher growth rate
B. A fluctuating growth rate
C. A lower growth rate
D. No change in the growth rate
10 Economic growth may depend upon __________ and_________
A.
Population size , x -efficiency
B. Population age distribution, education
C. Population growth, education
D. Population growth, technical progress

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