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

According to the permanent income hypothesis all increases in .

Question # 2

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 # 3

Economics is the science of Wealth who gave this definition.

Question # 4

The multiplier that applies to changes in autonomous investment is identical to changes in.

Question # 5

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

Question # 6

The equation for the LM curve is.

Question # 7

Which of the following changes shifts the AD curve down and to the left.

Question # 8

The value of real GDP in the current year equals.

Question # 9

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

Question # 10

In the Keynesian model in the long run an increase in the money supply will raise

Question # 11

An increase in total production causes the demand for money to _____ and the interest rate to ______

Question # 12

Monetary expansion can still be effective in getting out of liquidity trap if it's combined with.

Question # 13

Total factor productivity growth is that part of economic growth due to.

Question # 14

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

Question # 15

Based on the data above , the increase in potential MI would be

Question # 16

Expansionary monetary policy

Question # 17

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 # 18

The term household production refers to

Question # 19

If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.

Question # 20

The ratio of the change in the equilibrium level of income to a change in some automats increase in spending is the

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Which of the following macro economic variables is procyclical and coincident with the business cycle.
A. Residential investment
B. Nominal interest rates
C. Industrial production
D. Unempolyment
2 Using the Keynesian model the effect of an increase in the effective tax rate on capital would be to cause _________ in the real interest rate and ______ in output in the short run.
A. A decrease ; a decrease
B. A decrease ; no change
C. No change ; a decrease
D. An increase ; an increase
3 If the price level for an economy was 100 in 1984 , 115 in 1985 and 125 in 1986 the rate of inflation between 1985 and 1986 was.
A. 105
B. 8%
C. 8.7%
D. 17.5%
4 When an increase in government spending is matched by an equal decrease in government transfers, the income level will.
A. Stay the same
B. Increase
C. Decrease
D. All of the above
5 A rise in the exchange rate value of the rupee will most likely cause.
A. A dollar to be worth less in learns of other currencies.
B. Imports to decrease
C. Exports to increase
D. The balance of payments curve to shift to the left
6 Which of the following is the most liquid.
A. A savings account
B. A 6 months CD
C. A home
D. Water
7 In the short run an increase in export sales would cause output to ______ and the price level to.
A. Rise, rise
B. Rise,; stay; constant
C. Fall; rise
D. fall; stay; constant
8 The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's
A. Surplus
B. Profit
C. Gross product
D. Value added
9 The reduction of the inflation rate is called
A. Deflation
B. Disinflation
C. Inflation
D. Reflation
10 According to the life cycle hypothesis consumption is related to.
A. Current income
B. Past peak income
C. Expected lifetime income
D. Price expectations over one's life time

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