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

All of the following are obstacles to international economic policy coordination except.

Question # 2

The fac that the production function relating output to labor becomes flatter as wemove from left to right means that.

Question # 3

Net National product equals.

Question # 4

When the economy goes into are cession there's an increase in.

Question # 5

If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is

Question # 6

The appropriate expenditure switching policy to correct a balance of payments deficit is.

Question # 7

Which of the following solutions does the economist suggest to cost inflation in higher education.

Question # 8

When GNP is Rs.500 billion and consumption expenditures are Rs.300 billion.

Question # 9

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

Question # 10

An increase labor supply would cause the IS curve to.

Question # 11

Firms hire labor at the point where the

Question # 12

Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.

Question # 13

Which of the following is the most liquid.

Question # 14

In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.

Question # 15

In the Keynesian model short run equilibrium occurs where

Question # 16

Which of the following in a graph with interest rates and income on the vertical and horizontal axes, does not shift the balance of payments curve to the right.

Question # 17

GDP difference between GNP because.

Question # 18

The reduction of the inflation rate is called

Question # 19

When a British pound equals Rs. 1.60 and the French France equals Rs. 0.40 the ability to earn infinite profit if it were not the case, implies that the exchange rate would be.

Question # 20

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An increase in total production causes the demand for money to _____ and the interest rate to ______
A. Increase ; increase
B. Increase ; decrease
C. decrease ; decrease
D. decrease,; increase
2 Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.
A. The break even level of income is 240
B. Dissaving takes place if income is 300
C. Consumption expenditures and saving are equal at an income level of 500
D. The MPS is constant for all levels of income
3 When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.
A. Rs.90
B. Rs.400
C. Rs.500
D. Rs.900
4 Two independent variables are not independent of each other in a multiple regression problem The analyst most likely will be confronted with.
A. The problem of autocorrelation
B. A type 1 error
C. The problem of multicollinear rarity.
D. a type II error
5 When aggregate economic activity increasing the economy is said to be in.
A. An expansion
B. A contraction
C. A peak
D. A turning point
6 When a British pound equals Rs. 1.60 and the French France equals Rs. 0.40 the ability to earn infinite profit if it were not the case, implies that the exchange rate would be.
A. 1 franc = 4 pounds
B. 1 franc = 1 pound
C. 5 franc = 1 pound
D. None of the above
7 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
8 What adjusts to restore general equilibrium after a shock to the economy.
A. The LM curve
B. The IS curve
C. The FE line
D. The labor supply curve
9 The regression results indicate that the standard error of estimate is.
A. 135.94
B. 16.06
C. 28.98
D. 4.27
10 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

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