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

When real income increases, other things equal we fan expect the demand for real money holdings to.

Question # 2

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

Question # 3

The extra utility from consuming one more unit of a good is called.

Question # 4

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 # 5

In Nash equilibrium each player chooses the best strategy.

Question # 6

Real business cycle theories suggest that _____ to correct departures from the desired growth path.

Question # 7

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

Question # 8

Women and non whiles on average receive lower comes than white men because.

Question # 9

Real business cycle are cycles in

Question # 10

If a person thinks they are better off after a 10% wage increase, and all prices have risen 10%, then they are experiencing.

Question # 11

Economics is the study of

Question # 12

In the EMU a country's competitiveness can change because of.

Question # 13

When the level of income _______ there will be atendency for the trade balance to improve as imports.

Question # 14

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.

Question # 15

The business cycle is not transmitted from one country to another through.

Question # 16

The multiplier accelerator model assumes _______ depends on.

Question # 17

The equilibrium price clears the market it is the price at which.

Question # 18

In a free market

Question # 19

Micro economics is conceded with

Question # 20

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

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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 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 If the government increase spending and raises taxes by just enough to finance the increase it will.
A. Leave output unchagned
B. Increase output
C. Reduce output
D. Increase the MPC
3 Efficiency wages are_______ that raise
A. Low wages , employment
B. High wages, labor supply
C. High wages, productivity
D. High wages, employment
4 If the MPC is 0.5 the multiplier is
A. 2
B. 1/2
C. 0.2
D. 20
5 A competitive firm produces a level of output at which.
A. Price is greater than marginal cost
B. Price equals marginal cost
C. Price is less than marginal cost
D. None of the above
6 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
7 Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.
A. Current account
B. Interest rate
C. Tax
D. Price
8 The growth rate of economics tend to converge because._________ is easier when capital per worker is low and because of_____
A. capital widening, technical innovation
B. Capital widening, catch up in technology
C. Capital deepening, technical innovation
D. Capital deepening, catch up technology.
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 competitive firms demand curve is.
A. Horizontal
B. Vertical
C. Down ward sloping
D. Fairly elastic

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