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
If your income during one year is L 10,000 ad the following year it is L,12,000 then it has grown by
Choose an answer
20%
2%
12%
15%
Previous
Skip
Next
Question # 2
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
Previous
Skip
Next
Question # 3
When capital mobility is perfect, interest rate differentials will tend to be offset by
Choose an answer
Price differences.
Balance of payments differences.
Current account differences.
Expected exchange rate changes
Previous
Skip
Next
Question # 4
The primary function of a bank is to.
Choose an answer
Control the money supply
Provide notes and coins for trade
Make a profit
Provide a chequeen clearing system.
Previous
Skip
Next
Question # 5
An upward shift in marginal cost ___________ output and an upward shift in _____ marginal revenue __ output.
Choose an answer
Reduce , reduce
Reduce , increase
Increased, increased
Increases, reduces
Previous
Skip
Next
Question # 6
Possible causes of involuntary unemployment are
Choose an answer
Minimum wage agreements
Trade unions
Scale economies
All of the abvoe
Previous
Skip
Next
Question # 7
An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others
Choose an answer
Worse off, worse off
better off, better off
better off, worse off
equal , unequal
Previous
Skip
Next
Question # 8
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
Previous
Skip
Next
Question # 9
The increase in total cost when one more units is produced is known as.
Choose an answer
Marginal cost
Opportunity cost
Limited cost
Average cost
Previous
Skip
Next
Question # 10
In the circular flow we would expect leakages to __________ injections.
Choose an answer
equal
be less than
by greater than
Be less or greater than
Previous
Skip
Next
Question # 11
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 # 12
All of the following are benefits of the single market except.
Choose an answer
It allows countries to exploit their comparative advantage, more fully
Firms could more readily exploit economies of scale
It intensified competition
It is easier book holidays in member countries.
Previous
Skip
Next
Question # 13
In the UK in recent years, union membership has ______ and days of work lost because of strikes has.
Choose an answer
Grown, declined
declined, declined
declined, grown
grown , grown
Previous
Skip
Next
Question # 14
Bank create money by
Choose an answer
Printing it
Issuing debit cards
Accepting chequeens
Lending out part of their deposits
Previous
Skip
Next
Question # 15
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 # 16
Comparing a monopoly and a competitive firm the monopolist will.
Choose an answer
Produce less at a lower price
Produce more at a lower price
Produce less at a higher price
Produce less at a lower price
Previous
Skip
Next
Question # 17
The costs of inflation are
Choose an answer
Shoe leather costs
Menu costs
Income redistribution
All of the above
Previous
Skip
Next
Question # 18
If the MPC is 0.5 the multiplier is
Choose an answer
2
1/2
0.2
20
Previous
Skip
Next
Question # 19
The impossibility of negative gross investment provides a______ to fluctuations in.
Choose an answer
Celling, stock building
Celling, capital prices
floor , output
floor , the capital output ratio
Previous
Skip
Next
Question # 20
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 # 21
A straight line diagram can be drawn knowing the _______ and _____
Choose an answer
Vertical axis and horizontal axis
Intercept and slope
Scale and slope
Intercept and scale.
Previous
Skip
Next
Question # 22
Positive cross elasticities suggest that goods are ______ and negative cross elasticities that goods are.
Choose an answer
Substitutes, interior
Normal, complements
Substitutes, complements
Normal , interior
Previous
Skip
Next
Back