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 practice of using fiscal and monetary policy to stabilize the economy is known as.

Question # 2

Most industrial construes generally considered _______ as the most important economic goal

Question # 3

Which of the following is not a primary cause of business cycle fluctuations according to real business cycle theory.

Question # 4

Which of the following is the second law of gossen.

Question # 5

The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's

Question # 6

Over a two year period your income has increased 10% At the same time the consumer price index has increased 205 Your real purchasing power is.

Question # 7

The equation for the LM curve is.

Question # 8

If the foreign interest rate is 12% while the domestic interest rate in 95 then the forward premium will be.

Question # 9

Money must fulfill all of the following functions except.

Question # 10

An increase in the expected future marginal product of capital would cause the IS curve to.

Question # 11

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

Question # 12

An increase in the real wage rate will cause

Question # 13

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 # 14

The natural rate of unemployed is generally thought of as the.

Question # 15

The through of a business cycle occurs when ______ hits its lowest point.

Question # 16

Under law of demand.

Question # 17

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

Question # 18

The normal interest rate minus the inflation rate is the

Question # 19

If the expected inflation rate is unchanged a fall in the natural rate of unemployment would.

Question # 20

In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 The short run impact of unanticipated expansionary monetary policy is that.
A. Real output decrease
B. Employment decreases
C. Real interest rates decrease
D. Profit margins decrease
2 An increase in investment leads to an increase in income and consumer spending, which in turn leads to a further increase in investment spending This is example of.
A. The expenditure multiplier
B. Explosive gowth
C. Hyperinflation
D. Interaction of multiplier and accelerator
3 The gift exchange motive suggests that
A. Workers value benefits like health insurance more than job security
B. Workers prefer a nice work environment even if they must accept lower wages.
C. Workers who feel well treated will work harder and more efficiently
D. Workers will shirk if they are paid a low wage
4 In closed economic model aggregate demand is not sensitive to.
A. Interest rates
B. Exchange rates
C. Price level
D. Tax policy
5 According to the permanent income hypothesis all increases in .
A. Permanent income are saved
B. Permanent income are consumed
C. transitory income are saved
D. Transitory income are consumed
6 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
7 Which of the following is an example of a productivity shock.
A. The introduction of new management techniques
B. A change in taxes on corporate profits
C. A change in the level of government transferors
D. An increase in the money supply
8 Utility means.
A. Power to satisfy a want
B. Usefulness
C. Willingness of a person
D. Hamfulness
9 Which of the following methods is used for internalizaing positive externalities
A. Positive taxes
B. Government exchange of property rights
C. Effluent fees
D. Corrective substidies
10 In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.
A. Aggregate consumption
B. The sum of the receipts of economic resources
C. The sum of wages rent interest and profit
D. All of the above

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