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

The Ad, SRAS ,and LRAS curve each show a relationship between which two economic variables.

Question # 2

If nominal GNP were Rs.1000 ballooning 1976 and Rs.2200 billion in 1986, and the implicit GNP deflator was. 1.2 in 1976 and 1.6 in 1986 concluded that .

Question # 3

Friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but here should be a stable relationship between

Question # 4

"Human Welfare is the subject of Economics" Y. This statement is associated with the name of which of the economists.

Question # 5

Which of the following methods is used for internalizaing positive externalities

Question # 6

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

Question # 7

Hyperinflation occurs when

Question # 8

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

Question # 9

"Economics is what economists do " It has been supported by.

Question # 10

When aggregate economic activity is declining , the economy is said to be in.

Question # 11

In the Keynesian model short run equilibrium occurs where

Question # 12

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 # 13

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

Question # 14

In the efficiency wage model if the real wage is higher than the market clearing wage so that there in an excess supply of labor.

Question # 15

A situation in which expansionary in monetary policy has no effect on the economy is known as.

Question # 16

A change that increase real money demand relative to the real money supply causes.

Question # 17

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 # 18

When aggregate economic activity increasing the economy is said to be in.

Question # 19

A technological improvement will

Question # 20

When desired national saving equals desired national investment what market is in equilibrium.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An economics variable that moves in the same direction as aggregate economic activity is called.
A. Countercyclical
B. Procyclical
C. A cyclical
D. A leading variable
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 The nominal interest rate minus the inflation rate is the
A. Depreciation rate
B. Discount rate
C. Forward rate
D. Real interest rate
4 When the marginal propensity to consume is 0.75 the multiplier has a value of.
A. 4
B. 5
C. 3
D. 2
5 In the long run, an increase in productivity would cause output to _________ and the aggregate price level to
A. fall ; rise
B. fall ; fall
C. rise ; fall
D. rise ; rise
6 An increase in autonomous net exports
A. Shifts IS rightward by k, ox
B. shifts IS left eard by k, AX
C. Increase the slope of IS
D. Decreases the slope of IS
7 The MPS = 0.4 and government spending increases by 20 billion. The LM curve
A. Shifts to the right by 20 billion
B. Shifts to the right by 50 billion
C. Does not shift
D. shifts to the left by 30 billion
8 The natural rate of unemployed is generally thought of as the.
A. Ratio of the frictional unemployment rate to the cyclical unemployment rate
B. sum of structural unemployment and cyclical unemployment
C. sum of frictional unemployment and cyclical unemployment
D. sum of frictional unemployment and structural unemployment.
9 A decline expected future output would cause the IS curve to.
A. Shift up and to the right
B. Shift down and to the left
C. Remain unchanged
D. shift up and to the right only if people face borrowing constratints.
10 The IS curve shows the combinations of output and the real interest rate for which.
A. The goods market is in equilibrium
B. The labor market is in equilibrium.
C. The financial assets market is in equilibrium
D. An increase in output will cause the market clearing interest rate to be bid up.

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