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

The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.

Question # 2

Deflation occurs only when

Question # 3

The hypothesis would the tested with

Question # 4

The value of a household's assets minus the value of its liabilities is called.

Question # 5

Which of the following is the most liquid.

Question # 6

Fiscal policy output to change demand for output is.

Question # 7

An asset with zero carrying costs and a present value of Rs.50,000 will return continuous annual yield of Rs.5000 if the current and future rate of inters is.

Question # 8

When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in.

Question # 9

A Rs.10 increase in autonomous investment spending shifts IS

Question # 10

Keynesian economists think general equilibrium is not attained quickly because.

Question # 11

Which of the following is an economic activity.

Question # 12

An expansionary supply side shock results in.

Question # 13

An invention that speeds up the internet is an example of.

Question # 14

According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.

Question # 15

Economics is the science of Wealth who gave this definition.

Question # 16

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

Question # 17

Marginal utility is equal to average utility at that time when average utility is.

Question # 18

Which of the following assets is most liquid.

Question # 19

An efficient economy is an economy

Question # 20

If a Canadian dollar costs 0.75 in terms of U.S. dollars, how much Canadian money would an American need to spend in Canada to get a dollar's worth of U.S. value.

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Sr.# Question Answer
1 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 .
A. Real GNP increased by approximately Rs. 542 billion from 1976 to 1986
B. The price level fell from 1976 to 1986
C. Real GNP increased by 35%
D. Nominal GNP increased by 80%
2 An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.
A. Discourse
B. Federal funds
C. Reserves
D. Collateral
3 If the foreign interest rate is 12% while the domestic interest rate in 95 then the forward premium will be.
A. 1.3 %
B. 12%
C. 9%
D. 3%
4 A technological improvement will
A. Increases the desired capital stock
B. Decrease the desired capital stock
C. Have no effect on the desired capital stock
D. Have the same effect on the desired capital stock as an increase in corporate taxes.
5 In the short run in the Keynesian model a sharp increase in oil prices would leave the economy with a ____ level of output and a ______ real interest rate.
A. Higher ; lower
B. Lower ; Higher
C. Higher ; higher
6 An expansionary supply side shock results in.
A. An increased real national income
B. The aggregate supply curve shifting to the left
C. The aggregate demand curve shifting to the right
D. The aggregate demand curve shifting to the left
7 An efficient economy is an economy
A. In which output is steady or growing and there is low inflation
B. That produces what consumers demand and does so at the least possible cost.
C. that distributes output equally among all consumers
D. In which there is a fair distribution of wealth.
8 Based on the data above , the increase in potential MI would be
A. Rs.50 billion
B. Rs.300 billion
C. Rs.60 billion
D. Rs.100 billion
9 An import function is 100+0.1 Y and exports are exogenous. If income (Y) is 500, and there is a trade deficit of 50, then exports are.
A. 0
B. 25
C. 75
D. 100
10 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
11 A disadvantage of chain weighting is that
A. Past inflation rates change whenever the base year changes.
B. Past growth rates of real GDP change whenever the base year changes.
C. It causes output growth to slow
D. The components of real GDP don't sum to real GDP
12 The use of micro economics policies to smooth or moderate the business cycle is known as.
A. Aggregate demand management.
B. Aggregate supply management
C. Automatic stabilization
D. Discretionary policy
13 Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i
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 beacause the user cost of capital is now higher
14 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.
15 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.
A. Increase by Rs.50 billion
B. Increase by more than Rs. 50 billion
C. Increase by less than Rs.50 billion.
D. Decrease by more than Rs.50 billion.
16 In market economics the incentive that draws entrepreneurs into industry is.
A. Government bonuses for meeting production quotas
B. Profit
C. Government assumption of the risk of failure
D. Government assistance with making output and pricing decisions
17 Banks can create money
A. Only by illegally printing additional dollar bills
B. By paying interest to their depositors
C. By making loans that result in additional deposits
D. By offering financial services, such as stick market brokerage
18 An increase in the expected rate of inflation would.
A. shift the Philips curve upward
B. shift the phillips curve downward
C. Shift the long -run phillips curve to the right
D. Shift the long-run phillips curve to the left
19 Changes in subjective or objective factors.
A. Never affect the consumption function
B. Always cause downward shifts of the consumption function
C. Always cause upward shifts of the consumption function
D. May cause upward or downward shifts of the consumption function
20 The substitution effect of a decrease in real interest rates is to cause a consumer to.
A. Increase future consumption and decrease current consumption
B. Decrease future consumption and increase current consumption
C. Increase current consumption and increase saving
D. Decrease current consumption and increase saving.

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