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

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Question # 1

In a free market

Question # 2

M4 is a _________ measures of money and includes deposits at both _____________ and

Question # 3

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

Question # 4

Adding up the quantities demanded of a good by different people facing the same price gives us the.

Question # 5

When capital mobility is perfect, interest rate differentials will tend to be offset by

Question # 6

A straight line diagram can be drawn knowing the _______ and _____

Question # 7

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

Question # 8

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

Question # 9

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

Question # 10

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

Question # 11

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 # 12

The equilibrium inflation rate is determine by the intersection of __________ and ___

Question # 13

Real business cycle are cycles in

Question # 14

During periods of rising inflation and rising interest rates we expect the demand for real cash to.

Question # 15

The cost of using capital services is the

Question # 16

A fall in investment demand can result from

Question # 17

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

Question # 18

A production technique is technically efficient if.

Question # 19

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

Question # 20

All of the following are parts of the business cycle except.

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Economics
11th Chapter

PPSC Economics Chapter 11 Test

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PPSC Economics Chapter 11 Important MCQ's

Sr.# Question Answer
1 In the event of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely.
A. Fall
B. Increases
C. Remain the same
D. Fluctuate
2 The AD schedule indicates that______ inflation is associated with______ output.
A. higher , lower
B. Higher , higher
C. Lower , lower
D. zero ,zero
3 The impossibility of negative gross investment provides a______ to fluctuations in.
A. Celling, stock building
B. Celling, capital prices
C. floor , output
D. floor , the capital output ratio
4 In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators
A. Money supply targets
B. Income policy
C. Interest rates
D. Inflation targets
5 The cost of using capital services is the
A. wage rate of capital
B. Interest charges
C. Marginal capital cost
D. Rental rate for capital
6 Efficiency wages are_______ that raise
A. Low wages , employment
B. High wages, labor supply
C. High wages, productivity
D. High wages, employment
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 Comparing a monopoly and a competitive firm the monopolist will.
A. Produce less at a lower price
B. Produce more at a lower price
C. Produce less at a higher price
D. Produce less at a lower price
9 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.
10 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

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