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

Which of the following is not included in gorses investment.

Question # 2

A decrease in wealth would cause the IS curve to

Question # 3

Which theory is generally included under micro economics.

Question # 4

If equilibrium national income is less than the full employment the gap can be closed by.

Question # 5

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

Question # 6

Assuming that money is neutral an increase in the nominal money supply would causes.

Question # 7

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

Question # 8

For interior commodities income effect is.

Question # 9

In the long run an increase in consumer spending would cause output to ________ and the price level to.___________

Question # 10

A temporary decrease in government purchases would cause.

Question # 11

The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's

Question # 12

An expenditure reducing policy would consist of a decrease in

Question # 13

Classical economics believe that in the short run.

Question # 14

If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.

Question # 15

Which of the following macroeconomic variables is procyclical and lags the business cycle.

Question # 16

When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in.

Question # 17

Firms hire labor at the point where the

Question # 18

According to the life cycle hypothesis consumption is related to.

Question # 19

The use of micro economics policies to smooth or moderate the business cycle is known as.

Question # 20

Net National product equals.

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PPSC Chapter 3 Important MCQ's

Sr.# Question Answer
1 In the Keynesian model short run equilibrium occurs where
A. The IS and LM curves interest
B. The IS curve LM curve and FE lines intersect
C. the IS curve intersects the FE line
D. The LM curve intersects the FE line
2 After a temporary beneficial supply shock hits the economy general equilibrium is restored by
A. A shift down and to the left of the IS curve
B. A shift to the left of the FE line
C. A shift up and to the left to the LM curve
D. A shift down and to the right of the LM curve
3 Which of the following is the most liquid.
A. A savings account
B. A 6 months CD
C. A home
D. Water
4 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
A. Raises it because the future marginal productivity of capital is higher
B. Lowers it because the future marginal productivity of capital is lower
C. Raises it because the user cost of capital is now lower
D. Lowers it beacause the user cost of capital is now higher
5 Capital goods are
A. A type of intermediate good
B. Final goods, because they are not used up during a given year
C. Produced in the same year as the related final good whereas intermediate goods are produced in different years.
D. Produced in one year whereas final goods are produced over a period of more than one year
6 Which theory is generally included under micro economics.
A. Price theory
B. Income theory
C. Employment theory
D. None of the above
7 An increase in the real wage rate will cause.
A. The labor demand curve to shift to the right
B. The labor demand curve to shift to the left
C. The quantity of labor demanded to rise
D. A movement along the labor demand curve
8 According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.
A. Cyclical ; frictional and structural
B. Frictional and cyclical , structural
C. Structural , frictional and cyclical
D. Frictional and structural ; cyclical
9 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.
A. slopes upward
B. Sloped downward
C. Is vertical
D. Is horizontal
10 In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.
A. LM is steeply sloped and IS is relatively that
B. LM is vertical and IS is stopped
C. LM is steeply sotped and IS is vertical
D. LM is relatively flat as is IS

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