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

What is the possible cause for a falling real GNP over a period of time.

Question # 2

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical.

Question # 3

In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.

Question # 4

The fact that the production function relating output to labor becomes flatter as we move from left to right means that.

Question # 5

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

Question # 6

The aggregate demand curve shows the combinations of output and the price level that put the economy on.

Question # 7

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 # 8

According to the efficiency wage model during a recession firms will not reduce real wages because.

Question # 9

In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.

Question # 10

The value of real GDP in the current year equals.

Question # 11

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

Question # 12

Find the change in revenue to the industry due to the taxs.

Question # 13

For interior commodities income effect is.

Question # 14

A temporary decline in productivity would cause the IS curve to.

Question # 15

The measured of GDP includes

Question # 16

The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.

Question # 17

Firms hire labor at the point where the

Question # 18

A rise in the price of bond causes the yield of the bond to.

Question # 19

In which of the following situations will an increase in the money supply have no effect upon equilibrium income.

Question # 20

If the rate of growth of a full employment labor forc eis 1.55 and 2.55 then the celling rate of growth of real GNP, according to Hick's theory of a constrained business cycle,is.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.
A. New Keynesians
B. Keynesians
C. Monetarists
D. The Classical shool
2 If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75
A. 60
B. 200
C. 250
D. 240
3 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
4 The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that.
A. Workers effort may depend on the unemployment rate and the real wage
B. During a recession labor supply will decrease reducing the efficiency wage
C. During a recession productivity wil fall causing a reduction in the efficiency wage
D. During a boom labor demand will increase, causing the efficiency wage to rise
5 An economy is in inflationary equilibrium A sustained increase in government appending shifts.
A. DAD rightward for one period
B. DAD and DAS right ward permanently
C. DAD right ward and a new equilibrium
D. DAD right ward and a new equilibrium.
6 Keynes and Say's macroeconomic theory of employment were diametrically opposed Say state that.
A. Supply creates demand
B. Demand creates supply
C. Unemployment is a most likely state of affairs
D. Full employment can only be achieved by government interference.
7 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
8 The fac that the production function relating output to labor becomes flatter as wemove from left to right means that.
A. The marginal product of labor is positive
B. The marginal product of capital is positive
C. There is diminishing marginal productivity of labor
D. There is diminishing marginal productivity of capital
9 Which of the following is a NOT component of M-2.
A. Small time deposited
B. Money market mutual funds
C. Stocks
D. Checkable deposits
10 When total utility becomes maximum then marginal utility will be.
A. Minimum
B. Average
C. Zero
D. Negative

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