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PPSC Economics Chapter 11 Assess Your Basics MCQs With Answers
Question # 1
In an open economy leakages to imports ______ the value of the multiplier.
Choose an answer
Reduce
Increase
do not change
None of these
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Question # 2
A rise in the real exchange rate will __ the competitiveness of the domestic economy.
Choose an answer
Increase
reduce
do nothing do
all of these
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Question # 3
Polices to reduce unemployment by reducing union power tax cut reduction is unemployment benefit and investment. subsidies are examples of.
Choose an answer
Keynesian polices
Supply side policies
Monetarist policies
Classical policies
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Question # 4
The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.
Choose an answer
Sun spect theory
Multiplier accelerator model
Solow theory
New classical theory
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Question # 5
Women and non whiles on average receive lower comes than white men because.
Choose an answer
They tend to work in relatively unskilled jobs
Educational disadvantage
Firms are reluctant to invest in training
All of the above
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Question # 6
The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.
Choose an answer
Prices, wages, output and employment.
Output, prices, employment
Nominal money, the price level output and employment.
Nominal money output prices
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Question # 7
Extremality's arise because there is a divergence between ____ and _
Choose an answer
Private costs, private benefits
Private costs, social costs of benefits
Social cost, social benefit
Insiders, outsiders
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Question # 8
For given government spending and taxation the government budget deficit will grow in __________ and decline in _________
Choose an answer
booms, booms
recession, recession
booms, recessions
recessions, booms
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Question # 9
Taxes create a wedge between the sales price and purchase price that prevents the price system equaling _________ and
Choose an answer
Marginal costs, marginal benefits
Demand, supply
Marginal cost, marginal revenue
Marginal cost, average cost
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Question # 10
In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.
Choose an answer
Selling, increase
buying , increase
selling, reduce
both b and c
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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.
Choose an answer
Reduction, increases
reduction,reduction
increase, reduction
increases, increases
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Question # 12
In the UK under a _________ of the labour force belong to a trade union.
Choose an answer
Quarter
Third
Half
Three quarters
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Question # 13
The real value can be derived from a nominal value by
Choose an answer
Adjusting changes over time
Adjusting for data collection errors
Adjusting for population changes
Adjusting for changes in prices
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Question # 14
All of the following are types of imperfect competition except
Choose an answer
Monopolistic competition
Oligopoly
Monopoly
Unfair competition
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Question # 15
The participation rate in the labour force is affected by
Choose an answer
Higher real wages
Lower fixed costs of working
Lower non labor income
All of the above
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Question # 16
The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.
Choose an answer
Reduce, reduce
increase, increase
Increase , reduce
reduce, increase
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Question # 17
Real business cycle are cycles in
Choose an answer
Potential output
Actual output
Real output
International trade
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Question # 18
The prisoners Dilemma Game demonstrates that.
Choose an answer
Players are better off to act independently
Monopoly is better than competition
People will always cheat
Players are better off if they con operate
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Question # 19
Short run average total costs are equal to the sum of _______ and______
Choose an answer
Short run opportunity costs, profit
Short run average variable costs, profit
short run average variable costs, profit.
Short run average variable costs short run average fixed costs
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Question # 20
Leakages from the circular flow are____ and _____
Choose an answer
Investment savings, government expenditure
Saving , taxes net of subsidies, imports
Consumption, investment , government expenditure.
Consumption, taxes, impports
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Question # 21
M4 is a _________ measures of money and includes deposits at both _____________ and
Choose an answer
Narrow, banks, building societies
Wide, banks, insurance companies
narrow, banks, insurance companies
Wide, banks, building societies.
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