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

Which of the following solutions does the economist suggest to cost inflation in higher education.

Question # 2

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Question # 3

Utility means.

Question # 4

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

Question # 5

If government spending of Rs. 10 and a lump sum tax of Rs.10 is added, the empirical equation for the new IS curve becomes.

Question # 6

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 # 7

Which of the following changes shifts the AD curve up and to the right.

Question # 8

Marginal utility is equal to average utility at that time when average utility is.

Question # 9

O kun's Law states that for each percentage point by which the unemployment rate is above the natural rate real GNP is 3% below potential GNP, if real GNP is Rs. 3,800 billion with the actual level of unemployment at 6.05 and the natural rate of unemployment at 4.5% then according to Okun's law the GNP gap is.

Question # 10

An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.
One that is temporary.

Question # 11

A decrease in the effective tax rate on capital would cause the IS curve to.

Question # 12

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 # 13

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

Question # 14

An asset with zero carrying costs and a present value of Rs.50,000 will return continuous annual yield of Rs.5000 if the current and future rate of inters is.

Question # 15

If the price level for an economy was 100 in 1984 , 115 in 1985 and 125 in 1986 the rate of inflation between 1985 and 1986 was.

Question # 16

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment , caters parabasal increases equilibrium income and the budget.

Question # 17

An economics variable that moves in the same direction as aggregate economic activity is called.

Question # 18

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

Question # 19

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 # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Which of the following is a NOT component of M-2.
A. Small time deposited
B. Money market mutual funds
C. Stocks
D. Checkable deposits
2 Which of the following will not result in an increase in the level of income.
A. An increase in autonomous spending
B. A decrease in autonomous taxes
C. An increase in autonomous transfers
D. an increased in net tax revenues
3 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
4 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
5 In the Keynesian model which curve is vertical.
A. LRAS
B. SRAS
C. AD
D. NS
6 The costs of disinflation would be low if
A. Expected inflation falls as inflation falls
B. Wages and price controls were used
C. The Phillips curve were nearly horizontal
D. The Phillips curve adjusted slowly to changes in inflation
7 Firms hire labor at the point where the
A. Nominal wage rate equals the marginal product of labor
B. Real wage rate equals the marginal revenue product of capital
C. Nominal wage rate equals the marginal revenue product of labor
D. Real wage rate equals the marginal revenue product of capital
8 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
A. Fell by 10% from 1985 to 1986
B. Rose by 10% from 1985 to 1986
C. Remained constant from 1985 to 1986
D. Fell by 1% from 1985 to 1986
9 What is the possible cause for a falling real GNP over a period of time.
A. A general fall in the value of output though changes in quantities producted.
B. A general increase in prices
C. An increase in the value of output produced and a general increase in prices
D. A, B and C
10 Which of the following is not a category of consumption spending in the national income accounts.
A. Consumer durables
B. Non durable goods
C. Services
D. Housing Purchases

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