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

The use of micro economics policies to smooth or moderate the business cycle is known as.

Question # 2

Which of the following is incorrect with respect to the consumption diagram.

Question # 3

When an increase in government spending is matched by an equal decrease in government transfers the income level will.

Question # 4

The equation for a givne production function is Q = K2 + KL, initially K = 2 and L = 1 if the value of both inputs is doubted the production function exhibite.

Question # 5

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

Question # 6

If the sampi is accepted as coming from a universe with a mean of Rs.500 or greater when if doesn't.

Question # 7

The IS curve shows the combinations of output and the real interest rate for which.

Question # 8

When the export function is Rs.100-0.2 Y , net exports are 0 when income is .

Question # 9

When aggregate economic activity increasing the economy is said to be in.

Question # 10

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

Question # 11

Suppose there is full employment and positively sloped aggregate supply schedule A decrees in taxes increases.

Question # 12

"Economics is a science " the basis of this statement is.

Question # 13

The regression results indicate that the standard error of estimate is.

Question # 14

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

Question # 15

When the supply of money increases.

Question # 16

The equation for the IS curve is.

Question # 17

The sign of the simple correlation coefficient is determined by

Question # 18

in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.

Question # 19

A change that increases the real money supply relative to real money demand causes.

Question # 20

Given the data above, the empirical equation for the IS curve is.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 The yield curve shows
A. The yields on stocks of different maturities
B. The interest rates on bonds of different maturities.
C. The yields on stocks with differing default risk
D. The yields on bonds with differing default risk
2 The econometric problem of errors in variables leads to
A. Ballasted estimates of regression coefficients.
B. Autocorrelation
C. Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.
D. None of the above
3 The idea that the natural rate of unemployment rises when the acual rate of unemployment rise is known s.
A. Stabilization
B. Insider outsider theory
C. Hysteresis
D. an efficiency wage model
4 Which of the following changes shifts the AD curve up and to the right.
A. A rise in the nominal money supply
B. An increase in income taxes
C. An increase in the risk on nonmonetary assets
D. A decreasing the future marginal productivity of capital.
5 Which theory is generally included under micro economics.
A. Price theory
B. Income theory
C. Employment theory
D. None of the above
6 The term household production refers to
A. Output produced by forcing children to work
B. Output produced by workers who are telecommuting
C. Services provided directly to households such as lawn mowing by landscape companies.
D. Output produced at home
7 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward.
A. SRAS
B. AD
C. LRAS
D. None of the above
8 Which of the following is an economic activity.
A. Teaching of a teacher in the school.
B. To teach son at home
C. To serve her child by mother
D. to play foot ball by a student
9 An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.
One that is temporary.
A. The LM curve
B. The IS curve
C. The FE line
D. The labor demand curve
10 If X becomes more expansive i relation to Y, what happens to the budget line in the X - Y space, with Y on the vertical axis.
A. It shifts to the right
B. It shifts to the left
C. The slope becomes flatter
D. The slope becomes steeper

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