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

When GNP is Rs.500 billion and consumption expenditures are Rs.300 billion.

Question # 2

A temporary decrease in government purchases would cause.

Question # 3

Which of the following macro economic variables doesn't vary much ove the seasons.

Question # 4

Which of the following is not a category of consumption spending in the national income accounts.

Question # 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

Question # 6

When the price level increases 25% starting from a price level equal to 100, a Rs. 1000 bond will have a real value of .

Question # 7

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

Question # 8

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

Question # 9

A change in autonomous spending is represented by.

Question # 10

The long run aggregate supply curve.

Question # 11

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

Question # 12

Keynesian economists think general equilibrium is not attained quickly because.

Question # 13

"Economics is what economists do " It has been supported by.

Question # 14

Which of the following changes shifts the AD curve up and to the right.

Question # 15

When the marginal propensity to consume is 0.75 the multiplier has a value of.

Question # 16

Economists use the phrase ceteris paribus to express the assumption.

Question # 17

Given the IS equation Y = Ke a - Ke Bn the IS slope decreases when

Question # 18

The long term demand for real money balance will rise when

Question # 19

Banks can create money

Question # 20

Ineven A occurs the payoff will be Rs.5,670.00 . the probability of event A occurring is .87 What is the expected payoff of event A.

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


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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 To ensure that the fundamental identity of national income accounting holds changes in inventories are.
A. Ignored
B. Counted as consumption
C. Treated as part of saving
D. Treated as part of expenditure
2 A change in autonomous spending is represented by.
A. A movement along a spending line
B. A shift of a spending line
C. A change in a behavioral coefficient.
D. None of these
3 If the sampi is accepted as coming from a universe with a mean of Rs.500 or greater when if doesn't.
A. A Type II error is made
B. A type I error is mad
C. The alternative hypothesis is correct.
D. A and C are correct
4 The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.
A. The marginal product of labor is positive
B. The marginal product of capital is positive
C. There is diminishing marginal productivity of labor
D. There is diminishing marginal productivity of capital
5 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
6 The Ad, SRAS ,and LRAS curve each show a relationship between which two economic variables.
A. The aggregate price level and output
B. The aggregate price level and the interest rate
C. Output and unemployment
D. Output and the interest rate.
7 The equilibrium level of income of the open economic model is.
A. 200
B. 400
C. 300
D. 500
8 A commercial bank has a required reserve ratio of 20% and desires to hold 5% in excess reserves. the bank receives a Rs. 10,000 deposit. It it abides by the required reserve ration and its desire to hold excess reserves the bank can make a loan of a most.
A. Rs.7500
B. Rs.2500
C. Rs.5000
D. Rs.30,000
9 Which of the following is an example of a productivity shock.
A. The introduction of new management techniques
B. A change in taxes on corporate profits
C. A change in the level of government transferors
D. An increase in the money supply
10 Suppose the intersection of the IS and LM curves is to the left of the FE line A decrease in the price level would most likely. eliminate a disequilibrium among the asset labor and goods markets by.
A. Shifting the LM curve down and to the right
B. Shifting the IS curve up and to the right
C. Shifting the IS curve down and to the left
D. Shifting the FE curve to the left

Test Questions

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