PPSC Economics Chapter 11 Assess Your Basics With Answers

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PPSC Economics Chapter 11 Assess Your Basics

Sr. # Questions Answers Choice
1 When investment is assumed to autonomous the slope of the AD schedule is determined by the. Marginal propensity to invest. disposable income Marginal propensity to consume Average properisity to consume <ul><li><br></li></ul>
2 If desired spending in the economy exceeds income we would expect. House hold to save more Firm to produce less Firms is produce more the MPC to change
3 Short run equilibrium output means that aggregate demand _ actual output is less than equals is greater than fluctuates around
4 In linear consumption function with a positive slope less that on means that if income increase, consumption will. Fall Not change Fluctuate Increase
5 When we refer to the hidden economy we mean unrecorded income owing to. Tax evasion Poor statistics The lags between statistical collection and publication . Smuggling
6 Real GNP is a crude measure of national welfare because it excludes. Consumption Investment Export's work in the home
7 Real GNP measures income Including non market activities Adjusted for inflation Including externalities Including tax evasion
8 Nominal GNP measures income At the present time Corrected for tax changes Corrected for changes in interest rates At current prices
9 In the circular flow we would expect leakages to __________ injections. equal be less than by greater than Be less or greater than
10 Injection into the circular flow are _________ and _______ Consumption, investment, exports Investment exports, transfer payments Investment government expenditure, exports. Taxes, exports, transfer payments.
11 Leakages from the circular flow are____ and _____ Investment savings, government expenditure Saving , taxes net of subsidies, imports Consumption, investment , government expenditure. Consumption, taxes, impports
12 In the economy when a steel producer sells steel to car producer it is regarded as. A final good An intermediate good an injection a leakage
13 In an economy, measuring total value (1) added, total value(2) spending on final goods and 3 total factor earning gives the result that. 3&gt;2&gt;1 3 +2&gt;1 3&lt;2&lt;1 Any measure can be larger or smaller than any other
14 The key issues of macroeconomics are Unemployment Inflation Economic growth All of the above
15 In the UK mergers can be referred to the competition commission of they create a firm with _______ of the market. 15% 20% 25% 30%
16 If two firms doing the same thing in the same industry join together this is known as a. vertical merger Horizontal merger Conglomerate merger Hostile takeover
17 The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity. Reduce, reduce increase, increase Increase , reduce reduce, increase
18 Taxes create a wedge between the sales price and purchase price that prevents the price system equaling _________ and Marginal costs, marginal benefits Demand, supply Marginal cost, marginal revenue Marginal cost, average cost
19 Except for taxes to offset ___ taxes are. Imperfect competition , popular Extremality's, distortionary Inequality, a first best option Poor health, unnecessary
20 Satellite television subscription and television detection devices are ways in which broadcasting companies address the _____ problem. Externality Market imperfection Deadweight burden Free rider
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