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

  • Total Questions20

  • Time Allowed20

Start Test Download PDF

PPSC Economics Topic 3 Macro Economics

00:00
Question # 1

In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.

Question # 2

The practice of using fiscal and monetary policy to stabilize the economy is known as.

Question # 3

Which of the following solutions does the economist suggest to cost inflation in higher education.

Question # 4

You are gold the level of savings in the economy is Rs.25 billion of equilibrium Using the consumption function C =20 + .9 Y, find equilibrium income .

Question # 5

What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%

Question # 6

The key difference between classical and Keynesian macro economist is their differing beliefs about.

Question # 7

Using the Keynesian model the effect of a government imposed celling on interest rates paid on personal checking accounts that is lower than the current market interest rate would be to cause._ in the real interest rate and _ in input out in the short sun.

Question # 8

In the efficiency wage model with the efficiency wage above the market clearing wage when employment is at its full employment level.

Question # 9

The major source of revenue for the government is.

Question # 10

According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.

Question # 11

O kun's Law states that for each percentage point by which the unemployment rate is above the natural rate real GNP is 3% below potential GNP, if real GNP is Rs. 3,800 billion with the actual level of unemployment at 6.05 and the natural rate of unemployment at 4.5% then according to Okun's law the GNP gap is.

Question # 12

For a borrower an increase in the real interest rate will lead to.

Question # 13

Banks can create money

Question # 14

The equilibrium level of Y and I derived from the LM and IS equations above is.

Question # 15

Friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but here should be a stable relationship between

Question # 16

Which of the following changes shifts the SRAS curve down.

Question # 17

Firms hire labor at the point where the

Question # 18

Which of the following factors will cause the demand curve for labor to shift to the right.

Question # 19

To ensure that the fundamental identity of national income accounting holds changes in inventories are.

Question # 20

If the expected inflation rate is unchanged a fall in the natural rate of unemployment would.

Submit

Prepare Complete Set Wise PPSC Economics Topic 3 Macro Economics MCQs Online With Answers


Topic Test

00:00
Submit

Top Scorers Of PPSC Economics Topic 3 Macro Economics MCQ`s Test

  • F
    Faiza Shehzad 21 - Aug - 2022 16 Min 07 Sec 20/20
  • S
    Shiza Amir 25 - May - 2022 02 Min 01 Sec 19/20
  • A
    Amjad Ali 07 - Jun - 2023 07 Min 07 Sec 13/20
  • M
    Mazhar Shahzad 20 - Aug - 2022 13 Min 02 Sec 13/20
  • A
    Ayyaz Ahmad 04 - Jun - 2024 02 Min 59 Sec 12/20
  • K
    Kiran Naeem 13 - May - 2023 03 Min 39 Sec 11/20
  • Y
    Yasir Zada 29 - May - 2022 08 Min 09 Sec 11/20
  • S
    Shama Suleman 21 - May - 2022 09 Min 36 Sec 11/20
  • I
    ilham wahid 01 - Jul - 2024 04 Min 33 Sec 10/20
  • T
    Tahir Nawaz 11 - Jan - 2024 09 Min 44 Sec 10/20
  • M
    Mahnoor NaSir 24 - May - 2022 12 Min 00 Sec 10/20
  • D
    DJ DJ 19 - Aug - 2022 12 Min 42 Sec 10/20
  • S
    sidra Naeem 22 - May - 2022 14 Min 25 Sec 10/20
  • Z
    zaheer hussain 16 - Jan - 2024 16 Min 32 Sec 10/20
  • A
    Atiq Ur Rahman 16 - Jun - 2023 19 Min 23 Sec 10/20

PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 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
2 In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.
A. Government payments for goods produced by foreign firms
B. Government payments for goods produced by firms owned by state of local governemnt
C. Government payments for welfare
D. All government payments are included in GDP
3 In a private sector model
A. Household saving is a leakage from the circular flow
B. Investment is a spending injection
C. All of the above
D. None of the above
4 What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%
A. 387
B. 50
C. 175
D. 203
5 What is the level of savings for disposable income = Rs.5,000 if dissaving's of 50 occur at a disposable income of Rs.0 and a marginal propensity to save equal to 0.257
A. Rs. 1.25
B. Rs.1.125
C. Rs.1,200
D. Rs.1,100
6 Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.
A. Decrease
B. Increase
C. Remain unchanged
D. Increase if the person was a lender and decrease if the person was a borrower
7 Industries that are extremely sensitive to the business cycle are the.
A. Durable goods and service sectors
B. Nondurable goods and service sectors.
C. Capital goods and nondurable goods sectors.
D. Capital goods and durable goods sectors.
8 As the economy nears full capacity the short run aggregate supply curve
A. Stagflation
B. Structural inflation
C. Demand side inflation
D. Supply side inflation
9 An increase in total production causes the demand for money to _____ and the interest rate to ______
A. Increase ; increase
B. Increase ; decrease
C. decrease ; decrease
D. decrease,; increase
10 After a temporary beneficial supply shock hits the economy general equilibrium is restored by
A. A shift down and to the left of the IS curve
B. A shift to the left of the FE line
C. A shift up and to the left to the LM curve
D. A shift down and to the right of the LM curve

Test Questions

Is this page helpful?