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

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 # 2

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

Question # 3

In the Keynesian model in the long run a decrease in the money supply will cause ___ in the interest rate and _____ in the price level.

Question # 4

The data indicates that country A in billions of rupees is experiencing a

Question # 5

Fiscal policy output to change demand for output is.

Question # 6

Which of the following macro economic variables is the most seasonally pro cyclical.

Question # 7

In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by

Question # 8

According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.

Question # 9

If X becomes more expansive i relation to Y, what happens to the budget line in the X - Y space, with Y on the vertical axis.

Question # 10

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

Question # 11

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.

Question # 12

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

Question # 13

If an individual has a money income M of Rs. 999 , the price of X is rs.7.00 per unit and ithe price of Y is Rs. 300 per unit find the equation for the budget lines.

Question # 14

Given the IS equation Y = Ke a - Ke Bn the IS slope decreases when

Question # 15

Expansionary monetary policy

Question # 16

According to classical economists the economy.

Question # 17

The regression equation for consumption as a function of disposable income is C = -60 + 0.90Y .the standard error of Y is 30 and the standard error of estimate is 9.5 What is the 95% confidence interval for C when Y is Rs. 1000 billion.

Question # 18

Full- employment output is the level of output that firms in the economy supply when

Question # 19

In the efficiency wage model with the efficiency wage above the market clearing wage when employment is at its full employment level.

Question # 20

An increase in the marginal propensity to import.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 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
2 Which of the following factors will cause the demand curve for labor to shift to the right.
A. The demand for the product produced by labor declines.
B. The prices of substitute imputes falls
C. The productivity of labor increases
D. None of the above
3 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
4 An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.
One that is temporary.
A. The LM curve
B. The IS curve
C. The FE line
D. The labor demand curve
5
Classical economics believe that in the short run.
A. Money neutrality exists and prices adjust rapidly
B. Money neutrality does not exist and prices adjust rapidly
C. Money neutrality does not exist and prices adjust rapidly
D. Money neutrality exists and prices do not adjust rapidly.
6 Which of the following macro economic variables doesn't vary much ove the seasons.
A. The nominal money stock
B. The unemployment rate
C. The real wage
D. Average labor productivity
7 Real business cycle theorists think that most business cycle fluctuations are caused by shocks to.
A. The production function
B. The size of the labor force
C. The real quantity of government purchases
D. The spending and saving decisions of consumers
8 The normal interest rate minus the inflation rate is the
A. Depreciation rate
B. Discount rate
C. Real interest rate
D. Forward rate
9 Fiscal policy output to change demand for output is.
A. Completely effective in region KL
B. Partially effective in region JK
C. Elasticity is infinite for region LT
D. Completely ineffective in region LT
10 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

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