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

Given fixed change rate assume Pakistan initiates expansionary monetary and fiscal polices to combat recession these policies will also.

Question # 2

Dynamic multipliers occur when

Question # 3

When total utility becomes maximum then marginal utility will be.

Question # 4

What is the level of savings for disposable income = Rs.5,000 if dissaving's of 50 occur at a disposable income of Rs.0 and a marginal propensity to save equal to 0.257

Question # 5

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

Question # 6

When planned saving is greater than planned investment.

Question # 7

Keynes considered subjective and objective factors.

Question # 8

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

Question # 9

If nominal GNP were Rs.1000 ballooning 1976 and Rs.2200 billion in 1986, and the implicit GNP deflator was. 1.2 in 1976 and 1.6 in 1986 concluded that .

Question # 10

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

Question # 11

Which of the following actions is an example of expansionary fiscal policy.

Question # 12

The Ad, SRAS ,and LRAS curve each show a relationship between which two economic variables.

Question # 13

An increase in the expected real interest rate tends to.

Question # 14

The long run aggregate supply curve.

Question # 15

Find the revenue the government collects as a result of the tax

Question # 16

Which of the following events would lead to an increase in the marginal product lf labor for every equantity labor.

Question # 17

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 # 18

Whose opinions have revolutionized the scope of macro economics.

Question # 19

Which of the following macro economic variables is procyclical and coincident with the business cycle.

Question # 20

A nation experience external balance if it achieves.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 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
2 The measured of GDP includes
A. Non market goods such as home making and child rearing
B. The benefits of clean air and water
C. Estimated values of activity in the underground economy
D. Purchases and sales of goods produced in previous periods
3 Which of the following in a graph with interest rates and income on the vertical and horizontal axes, does not shift the balance of payments curve to the right.
A. Capital flow restrictions
B. Export quotas
C. Export subsidies
D. Import tariffs
4 Money must fulfill all of the following functions except.
A. Be a medium of exchange
B. Be a store of value
C. Be generally accepted as a means of purchasing commodities
D. The above are all functions of money
5 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
6 The estimated regression coefficient for good Y indicates
A. Goods X and Y are independent goods
B. Good Y is relatively elastic
C. Good Y is a luxury good
D. Goods X and Y are complementary goods
7 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.
A. Increase by Rs.16
B. Decrease by Rs.16
C. Increase by Rs.40
D. Decrease by Rs.30
8 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
9 In the long run a reduction in labor supply would cause output to _______ and the aggregate price level to.
A. fall; rise
B. fall ; fall
C. rise ; fall
D. rise; rise
10 The negative relation ship between unemployment and inflation is know as the
A. Aggregate supply curve
B. Aggregate demand curve
C. Philipps curve
D. Efficiency wage line

Test Questions

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