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 government budget surplus equals

Question # 2

In the short run in the Keynesian model a sharp increase in oil prices would leave the economy with a ____ level of output and a ______ real interest rate.

Question # 3

The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's

Question # 4

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

Question # 5

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 # 6

The measured of GDP includes

Question # 7

When the price level increases 25% starting from a price level equal to 100, a Rs. 1000 bond will have a real value of .

Question # 8

A rise in the price of bond causes the yield of the bond to.

Question # 9

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

Question # 10

When the export function is Rs.100-0.2 Y , net exports are 0 when income is .

Question # 11

The substitution effect of a decrease in real interest rates is to cause a consumer to.

Question # 12

According to Keynesian macro economics price adjust _____ to shocks, so the government should.

Question # 13

Which of the following is not a primary cause of business cycle fluctuations according to real business cycle theory.

Question # 14

When an increase in government spending is matched by an equal decrease in government transfers, the income level will.

Question # 15

Fiscal policy output to change demand for output is.

Question # 16

Equilibrium occurs in a two sector model when

Question # 17

In the Keynesian model in the long run a decrease in the money supply will cause ___ in the interest rate and _____ in the price level.

Question # 18

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.

Question # 19

What adjusts to restore general equilibrium after a shock to the economy.

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 In the product market of the circular flow model.
A. Firms buy finished products from households.
B. Consumers buy factors of production from firms
C. Firms Sell factors of production to the government
D. Consumers buy finished products from firms
2 Which policy is an expenditure switching policy.
A. Increase in the money supply
B. Decrease in government expensitures
C. Increase in business and household taxes
D. Decrease in import tariffs
3 The gift exchange motive suggests that
A. Workers value benefits like health insurance more than job security
B. Workers prefer a nice work environment even if they must accept lower wages.
C. Workers who feel well treated will work harder and more efficiently
D. Workers will shirk if they are paid a low wage
4 When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.
A. Is unrelated to the rate of interest
B. Is positively related to the rate or interest
C. Inversely related to the rate of interest
D. Falls as the rate of interest decreases
5 The appropriate expenditure switching policy to correct a balance of payment surplus is.
A. Currency revaluation
B. Currency devaluation
C. Expansionary monetary policy
D. Contractionary fiscal policy
6 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical.
A. SRAS
B. AD
C. LRAS
D. None of the above
7 Keynesian economists think general equilibrium is not attained quickly because.
A. The real interest rate adjusts slowly
B. The level of output adjusts slowly
C. The real wage rate adjusts slowly
D. The price level adjusts quickly
8 A rise in the exchange rate value of the rupee will most likely cause.
A. A dollar to be worth less in learns of other currencies.
B. Imports to decrease
C. Exports to increase
D. The balance of payments curve to shift to the left
9 An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________
A. Shift down and to the left be unchanged
B. Shift down and to the left shift left
C. Shift up and to the right be unchanged
D. Shift up and to the right shift left
10 Full- employment output is the level of output that firms in the economy supply when
A. Taxes are zero
B. Wages and prices have fully adjusted
C. The unemployment rate in zero
D. All capital is fully utilized

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