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PPSC Economics Chapter 11 Assess Your Basics MCQs With Answers
Question # 1
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.
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Question # 2
On a graph a positive linear relation ship.
Choose an answer
Moves down to the right
Moves up to the left
Moves up to the right
Modes down to the left
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Question # 3
Short run average total costs are equal to the sum of _______ and______
Choose an answer
Short run opportunity costs, profit
Short run average variable costs, profit
short run average variable costs, profit.
Short run average variable costs short run average fixed costs
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Question # 4
Economics is the study of
Choose an answer
Production technology
Consumption decisions
How society decides what how and for whom to produce
The best way to run society
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Question # 5
For given government spending and taxation the government budget deficit will grow in __________ and decline in _________
Choose an answer
booms, booms
recession, recession
booms, recessions
recessions, booms
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Question # 6
In an economy, measuring total value (1) added, total value(2) spending on final goods and 3 total factor earning gives the result that.
Choose an answer
3>2>1
3 +2>1
3<2<1
Any measure can be larger or smaller than any other
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Question # 7
A production technique is technically efficient if.
Choose an answer
Output is maximized
Input are minimized
there is no way to make a given output using less of one input and no more of the other inputs.
costs are minimized
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Question # 8
The extra utility from consuming one more unit of a good is called.
Choose an answer
Marginal utility
Additional utility
surplus utility
Bonus utility
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Question # 9
The business cycle is not transmitted from one country to another through.
Choose an answer
Private sector imports and exports
Economic policy
The duration of compulsory education
Labour supply changes
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Question # 10
In the UK under a _________ of the labour force belong to a trade union.
Choose an answer
Quarter
Third
Half
Three quarters
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Question # 11
If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of.
Choose an answer
a nonlinear relationship
A positive linear relationship
A scatter diagram
A negative linear relationship
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Question # 12
In the EMU a country's competitiveness can change because of.
Choose an answer
Interest rate adjustment
Central bank intervention i the forex
Domestic wage and price adjustment
Devaluations
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Question # 13
If the income tax rate changes from 30% to 40% on incomes over L 30,000 and a person's income is l 31,000 then her marginal tax rate is.
Choose an answer
30%
10%
70%
40%
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Question # 14
In the neoclassical theory of growth a higher saving rate leads to.
Choose an answer
A higher growth rate
A fluctuating growth rate
A lower growth rate
No change in the growth rate
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Question # 15
Bank create money by
Choose an answer
Printing it
Issuing debit cards
Accepting chequeens
Lending out part of their deposits
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Question # 16
The quantity theory of money says that changes in ______ lead to equivalent changes in ______ but have no effect on.
Choose an answer
Prices, wages, output and employment.
Output, prices, employment
Nominal money, the price level output and employment.
Nominal money output prices
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Question # 17
If the central bank buys financial securities in the open market to increase the monetary base, this is an example of.
Choose an answer
Lender of last resort
Financial intermediation
Open market operations
Financial regulation.
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Question # 18
Micro economics is conceded with
Choose an answer
The economy as a whole
The electronics industry
The study of individual economic behavior
the interactions within the entire economy
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Question # 19
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.
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Question # 20
When real income increases, other things equal we fan expect the demand for real money holdings to.
Choose an answer
Fall
Not change
Increase
Decrease
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Question # 21
An allocation is Pareto efficient if no reallocation of resources would make some people_______ whiteout making others
Choose an answer
Worse off, worse off
better off, better off
better off, worse off
equal , unequal
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