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

00:00
Question # 1

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

Question # 2

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

Question # 3

A decrease in the marginal propensity to import will lead to.

Question # 4

A temporary decrease in government purchases would cause.

Question # 5

When the marginal propensity to consume is 0.75 the multiplier has a value of.

Question # 6

In the long run, an increase in productivity would cause output to _________ and the aggregate price level to

Question # 7

The term household production refers to

Question # 8

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Question # 9

The IS curve shows the combinations of output and the real interest rate for which.

Question # 10

An increase in the real wage rate will cause.

Question # 11

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 # 12

Classical economics think general equilibrium is attained relatively quickly because.

Question # 13

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 # 14

Which policy is an expenditure switching policy.

Question # 15

Economists use the phrase ceteris paribus to express the assumption.

Question # 16

The reduction of the inflation rate is called

Question # 17

An expansionary supply side shock results in.

Question # 18

In market economics the incentive that draws entrepreneurs into industry is.

Question # 19

The normal interest rate minus the inflation rate is the

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 A Rs.10 increase in autonomous investment spending shifts IS
A. Rightward by Rs.10
B. Leftward Rs.10
C. Rightward by Ke (Rs.10)
D. Leftward by Ke (Rs.10)
2 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.
A. Firms will hire new workers at lower wages
B. Firms will replace high paid workers with low paid formerly unemployed workers
C. Employers will not hire workers who are willing to work for a lower wage.
D. Firms will demand a higher level of effort from existing employees
3 Capital goods are
A. A type of intermediate good
B. Final goods, because they are not used up during a given year
C. Produced in the same year as the related final good whereas intermediate goods are produced in different years.
D. Produced in one year whereas final goods are produced over a period of more than one year
4 Economic planning by enteral government agencies is primarily associated with
A. command economies
B. Market economies
C. Laissez faire economies
D. Market faire economies
5 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
6 The major source of revenue for the government is.
A. the collection of property taxes
B. The collection of the corporates income tax
C. The collection of excise taxes on gasoline cigarettes and tires
D. The collection of import and export duties in the conduct of foreign trade
7 O kun's Law states that for each percentage point by which the unemployment rate is above the natural rate real GNP is 3% below potential GNP, if real GNP is Rs. 3,800 billion with the actual level of unemployment at 6.05 and the natural rate of unemployment at 4.5% then according to Okun's law the GNP gap is.
A. 171 billion
B. 684 billion
C. 114 billion
D. 228 billion
8 If the expected rate of inflation rose at the same time the natural rate of unemployment rose the Philips curve.
A. would shift down
B. would shift up
C. Would not move
D. Might shift up or down or not move depending on which effect was larger.
9 The long term demand for real money balance will rise when
A. the income elasticity of the demand for money is less than unity.
B. There is a long term increase in the price level
C. There is a relative increase in the stock of government securities.
D. Long term market interest rates are falling.
10 In the Keynesian model short run equilibrium occurs where
A. The IS and LM curves interest
B. The IS curve LM curve and FE lines intersect
C. the IS curve intersects the FE line
D. The LM curve intersects the FE line

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