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PPSC Economics Chapter 11 Assess Your Basics MCQs With Answers
Question # 1
A natural monopoly has a declining ________ over a large range of output.
Choose an answer
Long run marginal cost
Short run marginal cost
Long run average cost
Long run marginal cost
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Question # 2
Aggregate demand in an economy trading internationally with a government sector can be written s.
Choose an answer
AD = C+1
AD = C + 1+ G
AD = C +1+G+X+Z
AD+C+1+G+X-Z
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Question # 3
If a person thinks they are better off after a 10% wage increase, and all prices have risen 10%, then they are experiencing.
Choose an answer
Inflation
A supply shocks
Crowding out
Inflation illusion
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Question # 4
Injection into the circular flow are _________ and _______
Choose an answer
Consumption, investment, exports
Investment exports, transfer payments
Investment government expenditure, exports.
Taxes, exports, transfer payments.
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Question # 5
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 # 6
In a free market
Choose an answer
Government intervene
Government plan production
Government interfere
Price adjust to reconcile scarcity and desires.
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Question # 7
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.
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Question # 8
The level of the equilibrium exchange rate offsets international difference in.
Choose an answer
Comparative advantage
Absolute advantage
Opportunity cost
Relative costs
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Question # 9
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 # 10
The value of an asset depends upon
Choose an answer
Its scrap value
Its depreciation
The present value of the failure stream of income it can earn.
the cost of loans
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Question # 11
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.
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Question # 12
The extra utility from consuming one more unit of a good is called.
Choose an answer
Marginal utility
Additional utility
surplus utility
Bonus utility
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Question # 13
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
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Question # 14
The firms long run output decision will be where.
Choose an answer
Long run average cost a lowest
Marginal revenue equals output
Marginal revenue equals long run marginal cost
Marginal cost equals output
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Question # 15
In Nash equilibrium each player chooses the best strategy.
Choose an answer
Assuming other players move first.
Dominated by the other players
Given the strategies of other players
That is a credible threat
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Question # 16
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 # 17
The business cycle is not transmitted from one country to another through.
Choose an answer
Private sector imports and exports
Economic policy
The duration of compulsory education
Labour supply changes
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Question # 18
All of the following are types of imperfect competition except
Choose an answer
Monopolistic competition
Oligopoly
Monopoly
Unfair competition
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Question # 19
Economics assumes that people consume goods and services to achieve.
Choose an answer
Status
Prestige
Utility
Self esteem
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Question # 20
Normative economics form ______ based on.
Choose an answer
Positive statements facts
Opinions, personal values
Positive statements values
Opinions facts
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Question # 21
The cost of using capital services is the
Choose an answer
wage rate of capital
Interest charges
Marginal capital cost
Rental rate for capital
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