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

PPSC Economics Topic 3 Macro Economics

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Question # 1

An increase in the expected rate of inflation would.

Question # 2

If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is

Question # 3

For interior commodities income effect is.

Question # 4

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

Question # 5

In market economics the incentive that draws entrepreneurs into industry is.

Question # 6

In the Keynesian model which curve is vertical.

Question # 7

Keynesian economists think general equilibrium is not attained quickly because.

Question # 8

The long run aggregate supply curve.

Question # 9

What tow factors should you equate in deciding how many workers to employ.

Question # 10

The fact that the long run Phillips curve is vertical implies that

Question # 11

If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.

Question # 12

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

Question # 13

If the foreign interest rate is 12% while the domestic interest rate in 95 then the forward premium will be.

Question # 14

The regression equation for consumption as a function of disposable income is C = -60 + 0.90Y .the standard error of Y is 30 and the standard error of estimate is 9.5 What is the 95% confidence interval for C when Y is Rs. 1000 billion.

Question # 15

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

Question # 16

Which of the following is not a primary cause of business cycle fluctuations according to real business cycle theory.

Question # 17

Appreciation of the U.S. dollar results in.

Question # 18

When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.

Question # 19

The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 According to the efficiency wage model during a recession firms will not reduce real wages because.
A. Unions would go on strike reducing profitability
B. This would reduce worker effort and productivity.
C. The equilibrium real wage has increased
D. Legally, they can't
2 When a person received an increase in wealth, what is likely to happen to consumption and saving.
A. Consumption increase and saving increases.
B. Consumption increases and saving decreases
C. Consumption decreases and saving increases
D. Consumption decreases and saving decreases
3 When aggregate economic activity increasing the economy is said to be in.
A. An expansion
B. A contraction
C. A peak
D. A turning point
4 In the long run an increase in consumer spending would cause output to ________ and the price level to.___________
A. rise;rise
B. rise; stay; constant
C. stay constant ; stay constant
D. Stay constant ; rise
5 Which of the following changes shifts the SRAS curve up.
A. Ani increases in the labor force
B. A decrease in government purchases
C. An increase in firms costs
D. An increase in the money supply
6
Classical economics believe that in the short run.
A. Money neutrality exists and prices adjust rapidly
B. Money neutrality does not exist and prices adjust rapidly
C. Money neutrality does not exist and prices adjust rapidly
D. Money neutrality exists and prices do not adjust rapidly.
7 Assuming that money is neutral an increase in the nominal money supply would causes.
A. An excess supply for goods
B. an increase in the real money supply
C. A fall in the price level
D. A rise in nominal wages
8 Characteristics of economic laws are
A. Mere statement of economic tenduencies
B. Less certain
C. Hypothetical
D. All of the above
9 Which of the following will not result in an increase in the level of income.
A. An increase in autonomous spending
B. A decrease in autonomous taxes
C. An increase in autonomous transfers
D. an increased in net tax revenues
10 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

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