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

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.

Question # 2

Whose opinions have revolutionized the scope of macro economics.

Question # 3

An economy is in inflationary equilibrium A sustained increase in government appending shifts.

Question # 4

An increase in the number of workers hired by a firm could result from

Question # 5

Which of the following is an economic activity.

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

Characteristics of economic laws are

Question # 8

When a person received an increase in wealth, what is likely to happen to consumption and saving.

Question # 9

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Question # 10

When an increase in government spending is matched by an equal decrease in government transfers, the income level will.

Question # 11

Which of the following changes shifts the SRAS curve up.

Question # 12

What tow factors should you equate in deciding how many workers to employ.

Question # 13

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

Question # 14

If the price level for an economy was 100 in 1984 , 115 in 1985 and 125 in 1986 the rate of inflation between 1985 and 1986 was.

Question # 15

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

Question # 16

Banks can create money

Question # 17

If a Canadian dollar costs 0.75 in terms of U.S. dollars, how much Canadian money would an American need to spend in Canada to get a dollar's worth of U.S. value.

Question # 18

The Keynesian theory is consistent with the business cycle fact that inflation is

Question # 19

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 # 20

The Laffer curve depicts

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Money must fulfill all of the following functions except.
A. Be a medium of exchange
B. Be a store of value
C. Be generally accepted as a means of purchasing commodities
D. The above are all functions of money
2 The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a
A. Given rate of inflation
B. Given expected rate on inflation
C. Given level of unemployment
D. Given expected level of unemployment
3 From a Keynesian perspective business investment will de cline as a result of.
A. A fall in the interest rate
B. A decrease in business taxes
C. A decline in business expectations
D. Acceleration of business depreciation
4 The reduction of the inflation rate is called
A. Deflation
B. Disinflation
C. Inflation
D. Reflation
5 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
6 An import function is 100+0.1 Y and exports are exogenous. If income (Y) is 500, and there is a trade deficit of 50, then exports are.
A. 0
B. 25
C. 75
D. 100
7 Keynesian economists think general equilibrium is not attained quickly because.
A. The real interest rate adjusts slowly
B. The level of output adjusts slowly
C. The real wage rate adjusts slowly
D. The price level adjusts quickly
8 Based on the data above , the increase in potential MI would be
A. Rs.50 billion
B. Rs.300 billion
C. Rs.60 billion
D. Rs.100 billion
9 A situation in which expansionary in monetary policy has no effect on the economy is known as.
A. Macro economic stabilization
B. A liquidity trap
C. A depression
D. Capital flight
10 The main cause of cyclical unemployment is that.
A. Firms engage in race gender and sex discrimination in their hiring practices.
B. Some induvial do not have marketable job skills.
C. the level of overall economic activity fluctuates
D. Workers offer voluntarily quit a job to look for a better job.

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