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

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.

Question # 2

In a simple Keynesian world assume the economy is opiating at a full employment noninflationary level worsening world conditions necessitate additional government spending of Rs.50 billion. What should be the direction of change in taxes and magnitude of change to maintain stable price and full employment equilibrium.

Question # 3

An increase in the expected real interest rate tends to.

Question # 4

Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.

Question # 5

If the expected rate of inflation rose at the same time the natural rate of unemployment rose the Philips curve.

Question # 6

Suppose there is full employment and positively sloped aggregate supply schedule A decrees in taxes increases.

Question # 7

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.

Question # 8

in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.

Question # 9

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 # 10

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 # 11

An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.
One that is temporary.

Question # 12

A temporary decline in productivity would cause the IS curve to.

Question # 13

Which one of the following would cause demand pull inflation.

Question # 14

What adjusts to restore general equilibrium after a shock to the economy.

Question # 15

You are gold the level of savings in the economy is Rs.25 billion of equilibrium Using the consumption function C =20 + .9 Y, find equilibrium income .

Question # 16

Which market adjusts the quickest in response to shocks to the economy.

Question # 17

Using the Keynesian model , the effect of a decrease in the effective tax rate on capital would be to cause_____ in the real interest rate and __ in output in the long run.

Question # 18

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

Question # 19

A decline expected future output would cause the IS curve to.

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Economists use the phrase ceteris paribus to express the assumption.
A. All else equal
B. Everything affects everything else.
C. Scarcity is a fact of life
D. There is no such thing as a free lunch
2 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
3 An expenditure increasing policy would consist of an increase in
A. Import tariffs
B. Import quotas
C. Governmental taxes
D. The money supply
4 A beneficial supply shock would cause.
A. A movement up the short run Phillips
B. a movement down the short run Phillips curve
C. The short run Phillips curve to shift upward and to the rights
D. The short run Phillips curve to shift down ward and to the left
5 The risk free rate of interest would not be affected by.
A. Changes in real output
B. Change in the money supply
C. Term to maturity
D. None of the above
6 According to Keynesian macro economics price adjust _____ to shocks, so the government should.
A. Slowly ; do little
B. Rapidly ; do little
C. Rapidly ; fight recessions
D. Slowly ; fight recessions
7 "Economics is what economists do " It has been supported by.
A. Richard jones
B. Comte
C. Gunnar Myrdal
D. All of the above
8 Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock
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 because the user cost of capital is now higher
9 Which of the following will not result in an increase in the level of income.
A. An increase in autonomous spending
B. A decrease in autonomous taxes
C. An increase in autonomous transfers
D. an increased in net tax revenues
10 An expenditure reducing policy would consist of a decrease in
A. The par value of a currency
B. Government expenditures
C. Import duties
D. Business or household taxes

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