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

A situation in which expansionary in monetary policy has no effect on the economy is known as.

Question # 2

Which of the following does not result in an increase in U.S. autonomous net exports.

Question # 3

The IS curve shows the combinations of output and the real interest rate for which.

Question # 4

An increase in the expected rate of inflation would.

Question # 5

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

Question # 6

In the short run in the Keynesian model a sharp increase in oil prices would leave the economy with a ____ level of output and a ______ real interest rate.

Question # 7

A Rs.10 increase in autonomous investment spending shifts is.

Question # 8

Which of the following solutions does the economist suggest to cost inflation in higher education.

Question # 9

In the efficiency wage model if the real wage is higher than the market clearing wage so that there in an excess supply of labor.

Question # 10

An expenditure increasing policy would consist of an increase in

Question # 11

Ahmed uses dummy variables in order to determine the monthly seasonal effect in her regression model. The number of dummy variables used will be.

Question # 12

Disinflationary demand management policies.

Question # 13

As the economy nears full capacity the short run aggregate supply curve

Question # 14

Real business cycle theorists think that most business cycle fluctuations are caused by shocks to.

Question # 15

The measured of GDP includes

Question # 16

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

Question # 17

When the export function is Rs.100-0.2 Y , net exports are 0 when income is .

Question # 18

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

Question # 19

Which of the following will not result in an increase in the level of income.

Question # 20

The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 The yield curve shows
A. The yields on stocks of different maturities
B. The interest rates on bonds of different maturities.
C. The yields on stocks with differing default risk
D. The yields on bonds with differing default risk
2 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
3 The fact that the long run Phillips curve is vertical implies that
A. Monetary policy can't effect unemployment
B. Money is neutral in the long run
C. There is a natural rate of inflation
D. Money can't affect inflation in the long run
4 The equation for the IS curve is.
A. Y = 55 - 50 i
B. Y = 175 - 75 i
C. Y = 300 - 100 i
D. Y = 275 - 25 i
5 Which of the following macro economic variables is the most seasonally pro cyclical.
A. Expenditure on services
B. The unemployment rate
C. Expenditure on durable goods
D. The real wage
6 Under law of demand.
A. Price of commodity is an independent variable
B. Quantity demanded is a dependent variable
C. Reciprocal relationship is found between price and quantity demandded
D. All of the above
7 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.
A. Increasing returns to scale
B. Diseconomies of scale
C. Constant returns to scale
D. Economies of scale
8 The fact that the production function relating output to labor 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
9 In closed economic model aggregate demand is not sensitive to.
A. Interest rates
B. Exchange rates
C. Price level
D. Tax policy
10 Which market adjusts the quickest in response to shocks to the economy.
A. The asset market
B. The labor market
C. The goods market
D. In the macro economy

Test Questions

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