Question # 1

A scarce good.

Choose an answer

Does not exist

Is a good that can only be purchased with money

Is a good that can never be purchased with money

Is a good that is available in limited quantities, but is desired in greater quantities.

In a command economy

Choose an answer

The price mechanism acts as an incentive

Resources are allocated by market forces

Individual firms make decisions for themselves about what to produce and how to produce it.

The public sector is large

In the long run in perfect competition

Choose an answer

Price = average= cost = marginal cost

Price = average cost = total cost

The price covers fixed cost

total revenue = total variable cost

In a Boom

Choose an answer

Surpluses are likely to occur

Prices are likely to fall

supply will increase immediately to match demand

Shortages may occur

As income increases.

Choose an answer

the average propensity to consume gets nearer in value to the marginal propensity to consume

the average propensity to consume diverges in value from the marginal propensity to consume

the average propensity to consume falls

The averge propensity to consume always approaches 0

If injection are less than with drawls at the full employment level of national income there is.

Choose an answer

an inflationary gap

Equilibrium

A deflationary gap

Hyperinflation

Which of the following is a normative statement in economics.

Choose an answer

More spending by the government reduces poverty

Higher taxes lead to less desire to work

the UK Economy is growing fast relative to other European Union members

The Government should concentrate on reducing unemployment

Open market operations occur when the government.

Choose an answer

Reduces the interest rate

Buys and sells bonds and securities

Increases taxation

Increases the exchange rate

If the price in a market is fixed by the government above equilibrium.

Choose an answer

There is excess equilibrium

There is excess supply

There is excess demand

There is equilibrium

In land intensive method which mean production is used comparativelymore

Choose an answer

Labour

Land

Capital

Organization

Say's law states that

Choose an answer

Supply creates its own demand

Demand creates its own supply

There is no such things as a free lunch

Macro economics policy activism is essential to ensure full employment.

Which of the following is not a global organization?

Choose an answer

IMF

World bank

Competition commission

WTO

Globalization is made more difficult by

Choose an answer

The actions of the World Trade Organization

The removal of protectionist measures

Exchange rate instability

More free trade agreements

If a maximum price is set below equilibrium there will be.

Choose an answer

A price fall

A price increase

Excess supply

Excess demand

A profit maximizing firm will employ labour up to the point where.

Choose an answer

Marginal revenue = Marginal product

Margial cost = Marginal product

Marginal revenue product = Average cost of labour

Marginal revenue product = Marginal cost of labour

A study of how increase in the minimum wage rate will effect the national unemployment rate is an example of.

Choose an answer

Descriptive economics

Normative economics

Macro economics

Micro economics

Price equal to.

Choose an answer

Total revenue -quantity

Total revenue/quantity sold

total quantity sold * quantity sold

Total revenue/total cost

Aggregate demand refers to the total demand for all domestically produced goods and services in an economy generated from.

Choose an answer

The household and government sectors

The household sector

All sectors except the rest of the world

All sectors including the rest of the world.

Which of the following would decrease aggregate demand.

Choose an answer

Increased consumption

Increasing export revenue

Increased taxation revenue

Increased investment

The length of a business cycle would be measured from

Choose an answer

Peak t trough

Trough to peak

Peak to Peak

The slump to the expansion

More Classes

Other Links

PPSC Economics Chapter 1 Basic Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer