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

in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.

Question # 2

Based on the data above , the increase in potential MI would be

Question # 3

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

Question # 4

Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will.

Question # 5

If investors expectations concerning the future are positive and thus increase investment at every interest rate the.

Question # 6

Disinflationary demand management policies.

Question # 7

By definition, the marginal propensity to consumes.

Question # 8

The multiplier which specifically refers to an equal increase in government spending and taxes, giving rise to that same equal increase in national income is called.

Question # 9

The equilibrium level of Y and I derived from the LM and IS equations above is.

Question # 10

According to the life cycle hypothesis consumption is related to.

Question # 11

The equation for a givne production function is Q = K2 + KL, initially K = 2 and L = 1 if the value of both inputs is doubted the production function exhibite.

Question # 12

The equation for the IS curve is.

Question # 13

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

Question # 14

Ineven A occurs the payoff will be Rs.5,670.00 . the probability of event A occurring is .87 What is the expected payoff of event A.

Question # 15

Which of the following changes shifts the AD curve down and to the left.

Question # 16

In a private sector model

Question # 17

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

Question # 18

When the value of output exceeds planned spending .

Question # 19

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

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An increase in the expected real interest rate tends to.
A. Raise desired saving only
B. Raise desired investment only
C. Raise both desired savings and desired investment
D. Raise desired savings, but lower desired investment.
2 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
3 What adjusts to restore general equilibrium after a shock to the economy.
A. The LM curve
B. The IS curve
C. The FE line
D. The labor supply curve
4 The main cause of cyclical unemployment is that.
A. Firms engage in race gender and sex discrimination in their hiring practices.
B. Some induvial do not have marketable job skills.
C. the level of overall economic activity fluctuates
D. Workers offer voluntarily quit a job to look for a better job.
5 Which of the following methods is used for internalizaing positive externalities
A. Positive taxes
B. Government exchange of property rights
C. Effluent fees
D. Corrective substidies
6 An expenditure reducing policy would consist of a decrease in
A. The par value of a currency
B. Government expenditures
C. Import duties
D. Business or household taxes
7 According to Keynesians the primary source of business cycle fluctuation is.
A. Aggregate demand shocks
B. Productivity shocks
C. Oil price shocks
D. Consumer confidence shocks
8 The valued of expenditure multiplier relates.
A. The change in autonomous spending to the change in income
B. the change in consumption to change in income
C. The change in come to the change is consumption
D. The change in income to the change in autonomous spending.
9 If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.
A. A value less than 1.4
B. 3.33
C. 1.48
D. 3.03
10 In the long run an increase in government purchases of military equipment would cause output to _________ and the aggregate price level to
A. Stay constant fall
B. fall ; fall
C. fall ; stay constant
D. stay constant ; rise

Test Questions

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