PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 Which of the following would increase aggregate demand. Increasing saving Increasing import spending Increasing taxation revenue increased investment
2 An increase in aggregate demand will have most effect on prices if. Aggregate supply is price inelastic Aggregate supply is price elastic Aggregate supply has a unitary price elasticity Aggregate demand is price inelastic
3 Aggregate demand will increase if Consumption falls Investment falls Exports fall imports fall
4 When an economy first begins to frow more slowly. GDP increase Inflation is likely to increase Stock levels are likely to increse Investment in equipment is likely to increase
5 To anticipate what the economy is going to do next the government will look at. Lagging indicators Flashing indicators Coincidental iindicators Leading indicators
6 The socially optimal rate of growth is Zero Negative Where the marginal social benefit the marginal social cost total social costs are minimized
7 Economics growth can be seen by an outward shift of. The production possibility frontier The gross domestic barrier The marginal consumption frontier The Minimum Efficient scale
8 Labour productivity measures. The output per worker The output per machine Total output Marginal output
9 If labour productivity per week is 200 units and there are 5 employees what is the total output. 40 units 195 units 1000 units 200 units
10 In a recession, GDP. Grows negatively Grows by 0% Grows slowly Grows rapidly
11 Economic growth can be measured by The CPI The CBI GDP MPC
12 A higher GDP per capita may not mean that the quality of life has really improved because. It measures wealth not income It measures Gross Domestic product It does not measure the quality of the items produced it is only measured every five years
13 In a recession a government. Is likely to want to increase demand in the economy Is likely to want to decrease demand in the economy Is likely to want to stabilize demand in the economy Is likely to want to increase supply in the economy
14 To adjust from gross National Product to Net National Product Deduct deprecation Deduct indirect taxes Deduct subsidies Add inflation
15 To adjust GDP from market prices to factor cost. Add indirect taxes Subtract subsidies Deduct indirect taxes and subsides Deduct indirect taxes and add subsides
16 GDP plus net property income from aboard equals what. GNP NNP Depreciation Real GDP
17 In a Boom Surpluses are likely to occur Prices are likely to fall supply will increase immediately to match demand Shortages may occur
18 In a recession Unemployment is likely to be low prices are likely to increase Growth is negative Growth is slow
19 The standard of living is often measured by Real GDP per capita Real GDP Real GDP * Population Real GDP Plus depreciation
20 Gross National product equals Net National Product adjusted for inflation Gross domestic product adjusted for inflation Gross Domestic product plus net property income from abroad Net National product plus net property income from abroad
21 Which of the following is an injection into the economy. Investment Saving Taxation Import spending
22 A reflationary policy Increases aggregate supply Increases aggregate demand Decreases the price level Increase full employment
23 A deflationary policy could include Increasing injections Reducing taxation rates Reducing interest rates Reducing government spending
24 For equilibrium in an open four sector economy Actual injections = actual withdrawals Planned injections = Planned withdrawals Savings = investment Government spending = tax revenue
25 Injection are Assumed to be exogenous Assumed to be a function of national income Decrease aggregate demand Decrease the investment into an economy
26 If injections are greater than withdrawals. National income will increase National income will decrease National income will stay in equilibrium Price will fall
27 A significant increase in the government budget deficit is likely to. Reduce injections into the economy Reduce national income Move the economy away from full employment Boost aggregate demand
28 If there is a price celling there will be Shortages Surpluses Equilibrium None of these
29 An increase in national income is. Likely to increase exports Likely to decrease savings Likely to decrease investment Likely to increase spending on imports
30 "Reducing inflation is a more important objective than economic growth" is an example of. Normative economics Positive economics Objective economics Reality economics
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