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

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

Question # 2

If desired spending in the economy exceeds income we would expect.

Question # 3

With fixed exchange rates and no private currency flow, when the central bank buys domestic currency the domestic money supply is.

Question # 4

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

Question # 5

A production technique is technically efficient if.

Question # 6

The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve.

Question # 7

Taxes create a wedge between the sales price and purchase price that prevents the price system equaling _________ and

Question # 8

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

Question # 9

The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.

Question # 10

In linear consumption function with a positive slope less that on means that if income increase, consumption will.

Question # 11

For a competitive firm its short run supply curve is ________ and its long run supply curve is.

Question # 12

In Nash equilibrium each player chooses the best strategy.

Question # 13

If a long average cost rises, output rises from left to right this is an example of.

Question # 14

A dominant strategy is.

Question # 15

Normative economics form ______ based on.

Question # 16

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

Question # 17

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

Question # 18

Economic growth may depend upon __________ and_________

Question # 19

The most important source of wage differentiate are.

Question # 20

Land will be allocated between competing uses so that.

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Economics
11th Chapter

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Sr.# Question Answer
1 The firms long run output decision will be where.
A. Long run average cost a lowest
B. Marginal revenue equals output
C. Marginal revenue equals long run marginal cost
D. Marginal cost equals output
2 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.
A. Market imperfection
B. The law of diminishing returns
C. The paradox of thriff
D. Market failure
3 Market failure may arise because of.
A. Imperfect competition
B. Taxation
C. Externalities
D. All of the above
4 The price elasticity of demand measures
A. The responsiveness of quantity demanded to a change in prie.
B. How far a demand curve shifts
C. A change in price
D. A change in quantity demanded
5 The allocation of resources is not efficient it
A. The marginal cost of production does not equal society marginal benefit
B. The distribution is inequitable
C. Economic growth is low
D. Unemployment is high
6 The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.
A. Sun spect theory
B. Multiplier accelerator model
C. Solow theory
D. New classical theory
7 Under floating exchange rates, expectations of higher interest rates are likely to cause an __________ of the exchange rate.
A. Depreciation
B. Appreciation
C. fall
D. Devaluation
8 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
9 The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.
A. Reduce, reduce
B. increase, increase
C. Increase , reduce
D. reduce, increase
10 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.
11 A fall in investment demand can result from
A. Higher interest rates
B. Lower expected future profits
C. More expensive capital goods
D. All of the above
12 Injection into the circular flow are _________ and _______
A. Consumption, investment, exports
B. Investment exports, transfer payments
C. Investment government expenditure, exports.
D. Taxes, exports, transfer payments.
13 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
14 Women and non whiles on average receive lower comes than white men because.
A. They tend to work in relatively unskilled jobs
B. Educational disadvantage
C. Firms are reluctant to invest in training
D. All of the above
15 In linear consumption function with a positive slope less that on means that if income increase, consumption will.
A. Fall
B. Not change
C. Fluctuate
D. Increase
16 GDP per head may be an imperfect measure of economic welfare because it excludes.
A. The value of leisure
B. Externalities
C. Untraded goods
D. All of the above
17 If a country has a burden of debt it cannot sustain it can.
A. Reschedule debt
B. Get a loan from an international organization
C. Default on the loan
D. Any of the above
18 A person who is made redundant because of the contraction of an industry is a victim of.
A. Frictional unemployment
B. Demand deficient unemployment
C. Classical unemployment
D. Structural unemployment
19 M4 is a _________ measures of money and includes deposits at both _____________ and
A. Narrow, banks, building societies
B. Wide, banks, insurance companies
C. narrow, banks, insurance companies
D. Wide, banks, building societies.
20 If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from.
A. An import subsidy
B. A quota
C. Comparative advantage
D. An export subsidy

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