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

The reason that only final sales are counted in GDP is

Question # 2

Which of the following actions is an example of expansionary fiscal policy.

Question # 3

An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.
One that is temporary.

Question # 4

Changes in subjective or objective factors.

Question # 5

Which of the following is the second law of gossen.

Question # 6

The long run aggregate supply curve

Question # 7

In the short run an increase in export sales would cause output to ______ and the price level to.

Question # 8

A decrease in the effective tax rate on capital would cause the IS curve to.

Question # 9

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

Question # 10

When a British pound equals Rs. 1.60 and the French France equals Rs. 0.40 the ability to earn infinite profit if it were not the case, implies that the exchange rate would be.

Question # 11

The risk free rate of interest would not be affected by.

Question # 12

When planned saving is greater than planned investment.

Question # 13

A decrease in wealth would cause the IS curve to

Question # 14

The normal interest rate minus the inflation rate is the

Question # 15

The econometric problem of errors in variables leads to

Question # 16

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 # 17

If the expected rate of inflation rose at the same time the natural rate of unemployment rose the Philips curve.

Question # 18

Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.

Question # 19

When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.

Question # 20

Monetary expansion can still be effective in getting out of liquidity trap if it's combined with.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 In the short run an increase in export sales would cause output to ______ and the price level to.
A. Rise, rise
B. Rise,; stay; constant
C. Fall; rise
D. fall; stay; constant
2 Which of the following factors will cause the demand curve for labor to shift to the right.
A. The demand for the product produced by labor declines.
B. The prices of substitute imputes falls
C. The productivity of labor increases
D. None of the above
3 In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by
A. The government
B. Consumers and firms
C. Banks and stock markets
D. Firms, consumers, and government.
4 The MPS = 0.4 and government spending increases by 20 billion. The LM curve
A. Shifts to the right by 20 billion
B. Shifts to the right by 50 billion
C. Does not shift
D. shifts to the left by 30 billion
5 In the long run, an increase in productivity would cause output to _________ and the aggregate price level to
A. fall ; rise
B. fall ; fall
C. rise ; fall
D. rise ; rise
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.
A. 1.5 %
B. 2.55
C. 4.0%
D. 1.7%
7 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
8 An economic variable that moves in the opposite direction as aggregate economic activity up in is called.
A. Pro cyclical
B. Countercyclical
C. A cyclical
D. A leading variable
9 Country A 's GNP is increasing by 3% a year in contrast to its population growth of 2.4% The rate of growth of per capita GNP is.
A. 3%
B. 0.85
C. 0.6%
D. 2.4%
10 Over a two year period your income has increased 10% At the same time the consumer price index has increased 205 Your real purchasing power is.
A. 92% of the original value
B. 50% of its original value
C. Not affected by the price change
D. 109% of its original value

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