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

The regression results indicate that the standard error of estimate is.

Question # 2

Deflation occurs only when

Question # 3

The impact of contractionary fiscal policy, according to new classical theory is that.

Question # 4

Which of the following is the second law of gossen.

Question # 5

Which of the following is incorrect with respect to the consumption diagram.

Question # 6

The long term demand for real money balance will rise when

Question # 7

The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that.

Question # 8

Keynes and Say's macroeconomic theory of employment were diametrically opposed Say state that.

Question # 9

Which of the following is not a primary cause of business cycle fluctuations according to real business cycle theory.

Question # 10

The value of real GDP in the current year equals.

Question # 11

The multiplier which specifically refers to an equal increase in government spending and taxes, giving rise to that same equal increase in national income is called.

Question # 12

When the value of output exceeds planned spending .

Question # 13

The sign of the simple correlation coefficient is determined by

Question # 14

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

Question # 15

The long run aggregate supply curve

Question # 16

The long run Phillips curve is

Question # 17

Find the revenue the government collects as a result of the tax

Question # 18

Which of the following macro economic variables is procyclical and coincident with the business cycle.

Question # 19

The normal interest rate minus the inflation rate is the

Question # 20

Characteristics of economic laws are

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.
A. A value less than 1.4
B. 3.33
C. 1.48
D. 3.03
2 A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.
A. Marginal physical product
B. Marginal resources cost
C. Marginal cost
D. Marginal revenue
3 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
4 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%
5 According to the efficiency wage model during a recession firms will not reduce real wages because.
A. Unions would go on strike reducing profitability
B. This would reduce worker effort and productivity.
C. The equilibrium real wage has increased
D. Legally, they can't
6 The long run aggregate supply curve
A. Is vertical
B. slopes upward
C. Is horizontal
D. Slopes downward
7 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
8 Suppose there is full employment and a neoclassical aggregate supply schedule A 105 increases in the nominal money supply.
A. Has no effect upon the price level
B. Increase the rate of interest
C. Increase the nominal wage 10%
D. Increase the real money supply 10%
9 During inflation.
A. Lenders lose borrowers gain.
B. Borrowers lose , lenders gain
C. The real interest rate rises
D. Borrowers and lenders both lose.
10 A change that increase real money demand relative to the real money supply causes.
A. The LM curve to shift down and to the right
B. The LM curve to shift up and to the left
C. The IS curve to shift down and to the left
D. The IS curve to shift up and to the right

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