More Classes
5th Class
6th Class
7th Class
8th Class
9th Class
10th Class
11th Class
12th Class
NAT I
NAT II
CSS
IQ
General Knowledge
MDCAT
ECAT
GAT General
GAT Subject
Other Links
Go to Home
Online Tests
PPSC Economics Chapter 11 Assess Your Basics MCQs With Answers
Question # 1
The opportunity cost of a good is.
Choose an answer
The time lost in finding it
The quantity of other goods sacrificed to get another unit of that good
The expenditure on the good
The loss of interest in using savings
Previous
Skip
Next
Question # 2
In the short run, the supply of capital is _______ and in the long run iwll depend on.
Choose an answer
Variable technology
Fixed, expectations
Fixed, rental rate of capital
Variable, interest rates.
Previous
Skip
Next
Question # 3
If the government increase spending and raises taxes by just enough to finance the increase it will.
Choose an answer
Leave output unchagned
Increase output
Reduce output
Increase the MPC
Previous
Skip
Next
Question # 4
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.
Choose an answer
Market imperfection
The law of diminishing returns
The paradox of thriff
Market failure
Previous
Skip
Next
Question # 5
All of the following represent obstacles to LDC development except.
Choose an answer
Resource scarcity
Low level of investment
Low population
Poor infrastructure
Previous
Skip
Next
Question # 6
International specialization takes place because of.
Choose an answer
Differences in technology
Differences in factor endowments
Scale economies
All of the above
Previous
Skip
Next
Question # 7
LDC's often have a comparative advantage in the production of.
Choose an answer
Primary products
Intermediate products
Manufactured products
Financial services.
Previous
Skip
Next
Question # 8
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
Previous
Skip
Next
Question # 9
A supply curve is directly affected by
Choose an answer
Technology
Input costs
Government regulation
All of the above
Previous
Skip
Next
Question # 10
We cannot say whether one allocation of resources is better than another allocation because.
Choose an answer
some people cant count
Some people may not be permanent residents
Not all economic activity is legal
We cant make value judgements to compare different people welfare.
Previous
Skip
Next
Question # 11
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
Previous
Skip
Next
Question # 12
A profit maximizing firm will hire labor until _______ equal the
Choose an answer
Marginal revenue, marginal cost
Long run marginal revenue, long run marginal cost
Labour output ratio, capital output ratio
Marginal cost of labour, marginal revenue product
Previous
Skip
Next
Question # 13
The short run Philips curve can shift in response to changes in
Choose an answer
inflationary expectations
Unemployment
The inflation rate
Wage rates
Previous
Skip
Next
Question # 14
Market some times fall to exist because of.
Choose an answer
Externalities
the free rider problem
Poor transport
a an b
Previous
Skip
Next
Question # 15
When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.
Choose an answer
depreciates, appreciates
revalues, devalues
appreciates, deprecates
becomes more expensive, becomes cheaper
Previous
Skip
Next
Question # 16
The multiplier tells us how much __________ chagnes after a shift in.
Choose an answer
Consumption, income
Investment , output
Savings, investment
output, aggregate demand
Previous
Skip
Next
Question # 17
An increase in consumer income will increase demand for a __________ for decrease demand for a.
Choose an answer
Substitute good interior good
Normal good, interior good
Interior good, normal good.
Normal good, complementary good.
Previous
Skip
Next
Question # 18
On a graph a positive linear relation ship.
Choose an answer
Moves down to the right
Moves up to the left
Moves up to the right
Modes down to the left
Previous
Skip
Next
Question # 19
When investment is assumed to autonomous the slope of the AD schedule is determined by the.
Choose an answer
Marginal propensity to invest.
disposable income
Marginal propensity to consume
Average properisity to consume
Previous
Skip
Next
Question # 20
When we know the quantity of a product that buyers wish to purchases at each possible price we know.
Choose an answer
Demand
Supply
excess demand
Excess supply
Previous
Skip
Next
Question # 21
In a free market
Choose an answer
Government intervene
Government plan production
Government interfere
Price adjust to reconcile scarcity and desires.
Previous
Skip
Next
Back