PPSC Economics Topic 3 MCQS Test Preparation

Are you getting prepared for the PPSC economics test to appear for the upcoming positions? Well, you are offered the best wishes for your attempt. However, at the same time, the team of Ilmkidunya invites all the candidates to get a better solution for PPSC examination preparation. Students can find sample PPSC online tests. These tests will make the students able to know the exact paper pattern and also help them to sort out the important questions according to examination. Here on this page, the test of Topic 3, Macroeconomics is offered. However, students can also attempt the tests of other Topic through separate sections and pages.

MCQ's Test For PPSC Economics Topic 3 Macro Economics

Try The MCQ's Test For PPSC Economics Topic 3 Macro Economics

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PPSC Economics Topic 3 Macro Economics

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Question # 1

A beneficial supply shock would cause.

Question # 2

An increase in the real wage rate will cause.

Question # 3

The MPS = 0.4 and government spending increases by 20 billion. The LM curve

Question # 4

A temporary decline in productivity would cause the IS curve to.

Question # 5

If investors expectations concerning the future are positive and thus increase investment at every interest rate the.

Question # 6

If personal income equals Rs.570 white personal income takes equal Rs.90 consumption is Rs.430. interest payments total Rs. 10 and personal saving is Rs. 40, disposable income equals.

Question # 7

The expected real interest rate minus expected inflation rate.

Question # 8

Which of the following methods is used for internalizaing positive externalities

Question # 9

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the

Question # 10

Whose opinions have revolutionized the scope of macro economics.

Question # 11

The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.

Question # 12

In a simple Keynesian world assume the economy is opiating at a full employment noninflationary level worsening world conditions necessitate additional government spending of Rs.50 billion. What should be the direction of change in taxes and magnitude of change to maintain stable price and full employment equilibrium.

Question # 13

A nation experience external balance if it achieves.

Question # 14

The equation for the IS curve is.

Question # 15

The substitution effect of a decrease in real interest rates is to cause a consumer to.

Question # 16

The break even level of income where C = Y is

Question # 17

Which of the following macro economic variables is the most seasonally pro cyclical.

Question # 18

The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.

Question # 19

A situation in which expansionary in monetary policy has no effect on the economy is known as.

Question # 20

The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.
A. The marginal product of labor is positive
B. The marginal product of capital is positive
C. There is diminishing marginal productivity of labor
D. There is diminishing marginal productivity of capital
2 An asset with zero carrying costs and a present value of Rs.50,000 will return continuous annual yield of Rs.5000 if the current and future rate of inters is.
A. 5%
B. 8%
C. 10%
D. 3%
3 In the product market of the circular flow model.
A. Firms buy finished products from households.
B. Consumers buy factors of production from firms
C. Firms Sell factors of production to the government
D. Consumers buy finished products from firms
4 In the efficiency wage model if the real wage is higher than the market clearing wage so that there in an excess supply of labor.
A. Firms will hire new workers at lower wages
B. Firms will replace high paid workers with low paid formerly unemployed workers
C. Employers will not hire workers who are willing to work for a lower wage.
D. Firms will demand a higher level of effort from existing employees
5 An increase in autonomous net exports
A. Shifts IS rightward by k, ox
B. shifts IS left eard by k, AX
C. Increase the slope of IS
D. Decreases the slope of IS
6 Money must fulfill all of the following functions except.
A. Be a medium of exchange
B. Be a store of value
C. Be generally accepted as a means of purchasing commodities
D. The above are all functions of money
7 All of the following are obstacles to international economic policy coordination except.
A. Different national objectives are institutions
B. Different national political climates
C. Different phases in the business cycle
D. Different national currencies.
8 The measured of GDP includes
A. Non market goods such as home making and child rearing
B. The benefits of clean air and water
C. Estimated values of activity in the underground economy
D. Purchases and sales of goods produced in previous periods
9 When the export function is Rs.100-0.2 Y , net exports are 0 when income is .
A. Rs.300
B. Rs.400
C. Rs.500
D. Rs.600
10 The appropriate expenditure switching policy to correct a balance of payment surplus is.
A. Currency revaluation
B. Currency devaluation
C. Expansionary monetary policy
D. Contractionary fiscal policy

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