Question # 1

Increased levels of spending on imports

Choose an answer

shift aggregate supply to the right

Shift aggregate supply to the left

Shift aggregate demand to the right

Shift aggregate demand to the left

A movement along the demand curve may be caused by

Choose an answer

A change in income

A change en the number of buyers

A change in advertising

A shift in supply

What lies is at the heart of the allocation of goods and services in a free market economy.

Choose an answer

Concerns of equity or equal distribution among individuals.

The order or command of the ruling government or dictator

The wishes of consumers in the market

The price mechanism

An increase in price all other things unchanged leads to.

Choose an answer

A shift in supply out wards

A shift in supply in wards

A contraction of supply

An extension of supply

An increase in the wage rate.

Choose an answer

Will usually lead to more people employed

Will decrease total earnings if the demand for labour is wage elastic

Is illegal in a free market

Will cause a shift in the demand for labour

"Income inequality can be high in the free market and should be reduce ".This is an example of what.?

Choose an answer

Judicial economic statement.

Positive economic statement

Formative economic statement

Normative economic statement

An economy may operate outside the production possibility frontier it.

Choose an answer

It is not utilizing its resources fully

It is being productively efficient

It is a maxed economy

It is trading with other economics

The free market involves

Choose an answer

The free provision of products

The subsidizing of products by the government

Market forces of supply and demand

All trade via barter

Developing economics usually have

Choose an answer

Low GDP per captia

Low CPI

Large balance of payments surpluses

Large budget surpluses

What does the phrases "there is no such thing as a free lunch'mean"

Choose an answer

Individuals must always pay money for the food the eat.

No restaurant wner will provide food to patrons unless they pay her

Restaurant owners act selfishly

Consumption of any good requires that other goods be given up

If the price is less than the average cost but higher than the average variable costs.

Choose an answer

The firm is making a loss and will should own in the short term.

The firm is making a profit.

The firm is making a loss but will continue to produce in the short term

The firm is making a loss and is making a negative contribution to fixed costs

In economics, the term 'scarcity' refers to the fact that

Choose an answer

Everything worthwhile costs money

No society is able to produce enough to fully satisfy the desires of people for goods.

Even in wealthy societies, like the united states, some people are poor

sometimes shortages of product result if its price is set too low.

In any urban are there are people who have had healed wounds

GDP plus net property income from aboard equals what.

Choose an answer

GNP

NNP

Depreciation

Real GDP

Demand for primary products is likely to be

Choose an answer

Very sensitive to price

Price elastic

Unit elastic

Income inelastic

If people are made unemployed because of a fall in aggregate demand this is known as.

Choose an answer

Frictional unemployment

Seasonal unemployment

Cyclical unemployment

Structural unemployment

In the short run firm in perfect competition will still produce provided.

Choose an answer

The price covers average variable cost

The price covers variable cost

The price covers average fixed cost

The price covers fixed cost

An increase in national income is.

Choose an answer

Likely to increase exports

Likely to decrease savings

Likely to decrease investment

Likely to increase spending on imports

A movement along the supply curve may be caused by

Choose an answer

A change in technology

A change in the number of producers

A shift in demand

A change in costs

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.

Choose an answer

An fall in demand

An increase in supply

Improvements in production technology

An increase in demand

Economics given can be shown by

Choose an answer

An inward shift of the production possibility frontier

A movement down the production possibility frontier

An outward shift of the production possibility frontier

A movement up the production possibility frontier

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