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 three main components of the aggregate demand aggregate supply model include.

Question # 2

According to Keynesians the primary source of business cycle fluctuation is.

Question # 3

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

Question # 4

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

Question # 5

Which of the following will cause a monetary induced change versus a fiscal induced change in equilibrium income as determined.by IS - LM analysis.

Question # 6

Suppose there is full employment and positively sloped aggregate supply schedule A decrees in taxes increases.

Question # 7

If the Nominal GNP of an economy rose from Rs. 5000 to 5500 between 1985 and 1986 while the price index rose from 100 to 110 during the same period real GNP

Question # 8

A decline expected future output would cause the IS curve to.

Question # 9

The appropriate expenditure switching policy to correct a balance of payment surplus is.

Question # 10

Which of the following methods is used for internalizaing positive externalities

Question # 11

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

Question # 12

Using the Keynesian model the effect of a government imposed celling on interest rates paid on personal checking accounts that is lower than the current market interest rate would be to cause._ in the real interest rate and _ in input out in the short sun.

Question # 13

If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.

Question # 14

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the.

Question # 15

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

Question # 16

Which policy is an expenditure switching policy.

Question # 17

The nominal interest rate minus the inflation rate is the

Question # 18

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

Question # 19

The fact that the long run Phillips curve is vertical implies that

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 At point of satiety marginal utilityis.
A. Positive
B. Negative
C. Maximum
D. Zero
2 If the expected inflation rate is unchanged a fall in the natural rate of unemployment would.
A. shift the Phillips curve to the right
B. Not Shift the phillips curve
C. Shift the Phillips curve to the left
D. shift the Phillips curve to the left shift the long -run Philips curve to the right
3 When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.
A. Rs.90
B. Rs.400
C. Rs.500
D. Rs.900
4 Appreciation of the U.S. dollar results in.
A. U.S. tourists traveling abroad being worse off
B. U.S. imports increasing.
C. Foreign currency buying more U.S. goods and services.
D. No change iin foreign pucchases or sales.
5 The through of a business cycle occurs when ______ hits its lowest point.
A. Inflation
B. The money supply
C. Aggregate economic activity
D. The unemployment rate
6 Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock
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 because the user cost of capital is now higher
7 Which of the following changes shifts the long run aggregate supply curve to the right.
A. A demographic change that increases the labor supply
B. A decrease in the demand for labor
C. An increase in consumer confidence
D. A decrease in taxes
8 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.
9 If the quantity of money demands is less than the quantity of money supplied then the interest rate will.
A. Either increases or decrease, depending on the amount of excess demand.
B. Increase
C. Decrease
D. not change
10 A temporary decrease in government purchases would cause.
A. A rightward shift in the saving curve and a leftward shift in the investment curve
B. A rightward shift in the saving curve and a rightwards shift in the investment curve.
C. A right ward shift in the saving curve but no shift in the investment curve
D. No shift in the saving curve but a left ward shift in the investment curve.

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