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

Which of the following macro economic variables is the most seasonally pro cyclical.

Question # 2

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 # 3

The long term demand for real money balance will rise when

Question # 4

An increase in the expected real interest rate tends to.

Question # 5

Which of the following will cause a monetary induced change versus a fiscal induced change in equilibrium income as determined.by IS - LM analysis.

Question # 6

An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________

Question # 7

An increase in autonomous net exports

Question # 8

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.

Question # 9

Peaks and trough of the business cycle are known collectively as.

Question # 10

To avoid double counting when the GNP is estimated, economists

Question # 11

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

Question # 12

While resources and products flow in one direction of the circular flow model what flow the other direction.

Question # 13

The normal interest rate minus the inflation rate is the

Question # 14

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

Question # 15

The low point in the business cycle is referred to as the

Question # 16

Which of the following is the most liquid.

Question # 17

A beneficial supply shock would cause.

Question # 18

The reduction of the inflation rate is called

Question # 19

The econometric problem of errors in variables leads to

Question # 20

For a borrower an increase in the real interest rate will lead to.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 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
2 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
3 Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment , caters parabasal increases equilibrium income and the budget.
A. Romaic's in balnce
B. Has a surplus
C. Has a deficit
D. None of these
4 If personal income equals Rs.570 white personal income takes equal Rs.90 consumption is Rs.430. interest payments total Rs. 10 and personal saving is Rs. 40, disposable income equals.
A. Rs. 500
B. Rs.480
C. Rs. 470
D. Rs.400
5 The estimated regression coefficient for good Y indicates
A. Goods X and Y are independent goods
B. Good Y is relatively elastic
C. Good Y is a luxury good
D. Goods X and Y are complementary goods
6 In the long run an increase in consumer spending would cause output to ________ and the price level to.___________
A. rise;rise
B. rise; stay; constant
C. stay constant ; stay constant
D. Stay constant ; rise
7 Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.
A. Positive serial correlation
B. the presence of multicollinearity
C. No serial correlation
D. Negative serial correlation
8 The measured of GDP includes
A. Non market goods such as home making and child rearing
B. The benefits of clean air and water
C. Estimated values of activity in the underground economy
D. Purchases and sales of goods produced in previous periods
9 The aggregate supply of labor is the
A. Total amount of time a person works over his or her lifetime
B. Total amount of time a person spend in the labor force over his or her life time
C. Unemployment rate
D. Sum of the labor supplied by everyone in the economy
10 "An Enquiry into the Nature and causes of wealth of Nations" is thebook of economist.
A. Adam smith
B. Marshall
C. Robbins
D. None of above

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