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

Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.

Question # 2

Which of the following macro economic variables is procyclical and coincident with the business cycle.

Question # 3

An economics variable that moves in the same direction as aggregate economic activity is called.

Question # 4

The sign of the simple correlation coefficient is determined by

Question # 5

An efficient economy is an economy

Question # 6

If the rate of growth of a full employment labor forc eis 1.55 and 2.55 then the celling rate of growth of real GNP, according to Hick's theory of a constrained business cycle,is.

Question # 7

According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.

Question # 8

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 # 9

An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________

Question # 10

Classical economics believe that in the short run.

Question # 11

Utility means.

Question # 12

The monetary base in composed of.

Question # 13

The appropriate expenditure switching policy to correct a balance of payments deficit is.

Question # 14

The nominal interest rate minus the inflation rate is the

Question # 15

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

Question # 16

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

Question # 17

Which of the following results in an increase in the value of the dollar.

Question # 18

The Ad, SRAS ,and LRAS curve each show a relationship between which two economic variables.

Question # 19

Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 The long run aggregate supply curve.
A. Is vertical
B. Slopes upward
C. Is horizontal
D. Slopes downward
2 Peaks and trough of the business cycle are known collectively as.
A. Volatility
B. Turning points
C. Equilibrium point
D. Real business cycle events
3 The sign of the simple correlation coefficient is determined by
A. The intercept of the least squares equation.
B. The slope of the least squares equation
C. The appropriate economic theory.
D. The researcher
4 Which of the following solutions does the economist suggest to cost inflation in higher education.
A. Cutting professor salaries
B. Make students live at home
C. Reduce college from four to three years
D. B and C
5 The fraction of additional current income that a person consumes in the current period is known as the
A. Consumption smoothing motive
B. Consumption deficit
C. Saving rate
D. marginal propensity to consume
6 Which of the following is incorrect with respect to the consumption diagram.
A. the interest rate is a premium
B. MRS = (i +r)
C. The consumer will be lender in time zero
D. The consumer lends 700
7 Where there is an equal increase in net tax revenue and government spending, ceteris paribus.
A. (C+I+G) is shifting upward
B. (C+I+G) is shifting downward
C. (C+I+G) does not shift
D. All of these
8 The aggregate demand curve shows the combinations of output and the price level that put the economy on.
A. The FE line and the IS curve
B. The FE line The IS curve and the LM curve
C. The IS curve
D. The IS curve and the LM curve
9 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.
A. Rs.2000
B. Rs.1400
C. Rs.1000
D. Rs.750
10 Which of the following is a NOT component of M-2.
A. Small time deposited
B. Money market mutual funds
C. Stocks
D. Checkable deposits

Test Questions

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