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

When GNP is Rs.500 billion and consumption expenditures are Rs.300 billion.

Question # 2

Which of the following is an economic activity.

Question # 3

Which of the following assets is most liquid.

Question # 4

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 # 5

When all markets in the economy are simultaneously in equilibrium we say.

Question # 6

The valued of expenditure multiplier relates.

Question # 7

"Economics is a science " the basis of this statement is.

Question # 8

If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.

Question # 9

Changes in subjective or objective factors.

Question # 10

An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.

Question # 11

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

Question # 12

In the product market of the circular flow model.

Question # 13

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

Question # 14

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

Question # 15

If the demand for coffee decreases as income decreases, coffee is a

Question # 16

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

Question # 17

When aggregate economic activity is declining , the economy is said to be in.

Question # 18

An expenditure increasing policy would consist of an increase in

Question # 19

Which of the following is not a category of consumption spending in the national income accounts.

Question # 20

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.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Under law of demand.
A. Price of commodity is an independent variable
B. Quantity demanded is a dependent variable
C. Reciprocal relationship is found between price and quantity demandded
D. All of the above
2 Which policy is an expenditure switching policy.
A. Increase in the money supply
B. Decrease in government expensitures
C. Increase in business and household taxes
D. Decrease in import tariffs
3 When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.
A. Is unrelated to the rate of interest
B. Is positively related to the rate or interest
C. Inversely related to the rate of interest
D. Falls as the rate of interest decreases
4 Given the data above, the empirical equation for the IS curve is.
A. Y = 275 + 10 i
B. Y = 225 + 50 i
C. Y = 250 - 10 i
D. Y = 275 - 501
5 The value of real GDP in the current year equals.
A. The value of current year output in prices of the base year
B. The value of current year output in pries of the current year
C. The value of base year output in prices of the base year
D. The value of base year output in prices of the current year
6 The key difference between classical and Keynesian macro economist is their differing beliefs about.
A. The slope of the aggregate demand curve
B. The speed at which prices adjust
C. The natural rate of unemployment
D. The full employment level of output
7 When an increase in government spending is matched by an equal decrease in government transfers, the income level will.
A. Stay the same
B. Increase
C. Decrease
D. All of the above
8 A Rs.10 increase in autonomous investment spending shifts is.
A. Rightward by Rs. 10
B. Leftwards by Rs. 10
C. Rightward by Ke (Rs.10)
D. Leftward y Ke (Rs.10)
9 According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.
A. An increase ; an increase
B. An increase; a decrease
C. A decrease ; an increase
D. a decrease ; a decrease
10 The long run aggregate supply curve
A. Is vertical
B. slopes upward
C. Is horizontal
D. Slopes downward

Test Questions

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