Question # 1

If some body is prepared to work at the going wage rate but cannot find work than they are victims of.

Choose an answer

Voluntary unemployment

Classical unemployment

Frictional unemployment.

All of the above

A current account deficit means that a country may.

Choose an answer

Reduce its stock of foreign assets

Increases its stock of foreign assets

Increases its savings

Increases its foreign currency reserves.

Possible causes of involuntary unemployment are

Choose an answer

Minimum wage agreements

Trade unions

Scale economies

All of the abvoe

The equilibrium inflation rate is determine by the intersection of __________ and ___

Choose an answer

demand, supply

IS , LM

AD, AS

Labour demand, labour supply

A rise in the real exchange rate will __ the competitiveness of the domestic economy.

Choose an answer

Increase

reduce

do nothing do

all of these

The total multiplier for the economy will reflect.

Choose an answer

MPC and MPT

MPT and MPZ

MPC and MPZ

MPC, MPT and MPZ

In the short run, the supply of capital is _______ and in the long run iwll depend on.

Choose an answer

Variable technology

Fixed, expectations

Fixed, rental rate of capital

Variable, interest rates.

In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.

Choose an answer

Selling, increase

buying , increase

selling, reduce

both b and c

In a competitive industry each buyer and seller.

Choose an answer

Is a price taker

Produce different products

Believes that can influence price

Prevents the entry of competitors

Real GNP measures income

Choose an answer

Including non market activities

Adjusted for inflation

Including externalities

Including tax evasion

An advocate of the classical model of the economy would claim that unemployment a created when the ___________ is above its equilibrium level in the.

Choose an answer

Price level, agregate economy

Tax rate, government ebudget

Wage rate, labour market

Interest rate, market for loanable funds

The costs of inflation are

Choose an answer

Shoe leather costs

Menu costs

Income redistribution

All of the above

The cost of using capital services is the

Choose an answer

wage rate of capital

Interest charges

Marginal capital cost

Rental rate for capital

By restricting labour supply a trade union can _________ and_______

Choose an answer

Increase the wage, increase employment

Maintain the wage, increase employment

Increase the wage lower employment

Maintain the wage, lower employment

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.

The effect of a tax to offset a negative eternality will be to ________ price and ____ quantity.

Choose an answer

Reduce, reduce

increase, increase

Increase , reduce

reduce, increase

An increase in consumer income will increase demand for a __________ for decrease demand for a.

Choose an answer

Substitute good interior good

Normal good, interior good

Interior good, normal good.

Normal good, complementary good.

A person who is made redundant because of the contraction of an industry is a victim of.

Choose an answer

Frictional unemployment

Demand deficient unemployment

Classical unemployment

Structural unemployment

All of the following represent obstacles to LDC development except.

Choose an answer

Resource scarcity

Low level of investment

Low population

Poor infrastructure

A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.

Choose an answer

Enhances

Undermines

Encourages

Facilitates

For perfect competition ot work there must be

Choose an answer

Many buyers and sellers

A standard product

Free entry and exit

All of the above

More Classes

Other Links

PPSC Economics Chapter 11 Assess Your Basics 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

Choose an answer