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

When the marginal propensity to consume is 0.75 the multiplier has a value of.

Question # 2

In the long run, an increase in productivity would cause output to _________ and the aggregate price level to

Question # 3

If the federal reserve whishes to increase the money supply, it should

Question # 4

Classical economics think general equilibrium is attained relatively quickly because.

Question # 5

While resources and products flow in one direction of the circular flow model what flow the other direction.

Question # 6

What tow factors should you equate in deciding how many workers to employ.

Question # 7

The IS curve shows the combinations of output and the real interest rate for which.

Question # 8

Which of the following is an example of a productivity shock.

Question # 9

An increase in the number of workers hired by a firm could result from

Question # 10

The fac that the production function relating output to labor becomes flatter as wemove from left to right means that.

Question # 11

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 # 12

An economic variable that moves in the opposite direction as aggregate economic activity up in is called.

Question # 13

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

Question # 14

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

Question # 15

Which of the following macroeconomic variables is procyclical and lags the business cycle.

Question # 16

A change that increase real money demand relative to the real money supply causes.

Question # 17

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

Question # 18

The impact of contractionary fiscal policy, according to new classical theory is that.

Question # 19

Suppose there is full employment and a neoclassical aggregate supply schedule A 105 increases in the nominal money supply.

Question # 20

Appreciation of the U.S. dollar results in.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 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.
A. Increasing returns to scale
B. Diseconomies of scale
C. Constant returns to scale
D. Economies of scale
2 The value of a household's assets minus the value of its liabilities is called.
A. Income
B. Debt
C. Stock
D. Wealth
3 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
4 The fac that the production function relating output to labor becomes flatter as wemove from left to right means that.
A. The marginal product of labor is positive
B. The marginal product of capital is positive
C. There is diminishing marginal productivity of labor
D. There is diminishing marginal productivity of capital
5 Which of the following macroeconomic variables is procyclical and lags the business cycle.
A. Business fixed investment
B. Empolyment
C. Stock prices
D. Nominal interest rates
6 The Laffer curve depicts
A. A trade off between tax rates and government receipts
B. Price levels and real income
C. government deficits and unemployment
D. Tax rates and infixation
7 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.
A. 2.36
B. 0.42
C. 1.20
D. 0.96
8 A situation in which expansionary in monetary policy has no effect on the economy is known as.
A. Macro economic stabilization
B. A liquidity trap
C. A depression
D. Capital flight
9 According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.
A. Cyclical ; frictional and structural
B. Frictional and cyclical , structural
C. Structural , frictional and cyclical
D. Frictional and structural ; cyclical
10 Dynamic multipliers occur when
A. the assumption of ceteris paribus is dropped
B. The economy is not in equilibrium
C. Consumption is unrelated to disposable income
D. there is lagged response between consumption and disposable income

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