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

Changes in subjective or objective factors.

Question # 2

Which of the following is the second law of gossen.

Question # 3

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 # 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

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

Question # 6

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 # 7

If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75

Question # 8

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

Question # 9

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

Question # 10

A decrease in wealth would cause the IS curve to

Question # 11

The negative relation ship between unemployment and inflation is know as the

Question # 12

In a private sector model

Question # 13

A Rs.10 increase in autonomous investment spending shifts IS

Question # 14

The impact of contractionary fiscal policy, according to new classical theory is that.

Question # 15

The fraction of additional current income that a person consumes in the current period is known as the

Question # 16

A variable whose value is determined witching an economic theory or model is.

Question # 17

In the Keynesian model short run equilibrium occurs where

Question # 18

An expenditure reducing policy would consist of a decrease in

Question # 19

The break even level of income where C = Y is

Question # 20

The natural rate of unemployed is generally thought of as the.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 During inflation.
A. Lenders lose borrowers gain.
B. Borrowers lose , lenders gain
C. The real interest rate rises
D. Borrowers and lenders both lose.
2 When the marginal propensity to consume is 0.75 the multiplier has a value of.
A. 4
B. 5
C. 3
D. 2
3 In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.
A. $100
B. $1,000
C. $5,000
D. $10,000
4 Which of the following events would lead to an increase in the marginal product lf labor for every equantity labor.
A. An increase in the real wage
B. A decrease in the real wage
C. A favorable supply shock such as a fall in the price of oil
D. an adverse supply shock such as a reduced supply of raw materials.
5 Most industrial construes generally considered _______ as the most important economic goal
A. External balance
B. Internal balance
C. Maximum efficiency for business
D. Maximum efficiency for labor
6 The origin of the idea of a trae off between inflation and unemployment was a 1958 article by
A. A.W Philips
B. Edmund phelps
C. Milton Friedman
D. Robert Gordon
7 According to Keynesian macro economics price adjust _____ to shocks, so the government should.
A. Slowly ; do little
B. Rapidly ; do little
C. Rapidly ; fight recessions
D. Slowly ; fight recessions
8 Characteristics of economic laws are
A. Mere statement of economic tenduencies
B. Less certain
C. Hypothetical
D. All of the above
9 Peaks and trough of the business cycle are known collectively as.
A. Volatility
B. Turning points
C. Equilibrium point
D. Real business cycle events
10 The appropriate expenditure switching policy to correct a balance of payments deficit is.
A. Contractionary monetary policy
B. expansionary fiscal policy
C. Currency devolution
D. Currency revaluation

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