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

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

Question # 2

The reduction of the inflation rate is called

Question # 3

The dynamic aggregate demand schedule shifts rightward when there is an increase in.

Question # 4

In which of the following situations will an increase in the money supply have no effect upon equilibrium income.

Question # 5

The Laffer curve depicts

Question # 6

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 # 7

Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock

Question # 8

For a borrower an increase in the real interest rate will lead to.

Question # 9

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

Question # 10

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

Question # 11

Which of the following macro economics variables is a cyclical.

Question # 12

In closed economic model aggregate demand is not sensitive to.

Question # 13

Which of the following assets is most liquid.

Question # 14

Which one of the following would cause demand pull inflation.

Question # 15

The aggregate demand curve

Question # 16

Where there is an equal increase in net tax revenue and government spending, ceteris paribus.

Question # 17

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 # 18

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

Question # 19

The term household production refers to

Question # 20

A disadvantage of chain weighting is that

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 When planned saving is greater than planned investment.
A. Output should increase
B. Output should decrease
C. Output should not change
D. All of the above
2 In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.
A. Aggregate consumption
B. The sum of the receipts of economic resources
C. The sum of wages rent interest and profit
D. All of the above
3 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
4 The impact of contractionary fiscal policy, according to new classical theory is that.
A. Real interest rates do not change
B. Aggregate demand increase
C. Current real output substantially decreases
D. The price level substantially increases.
5 Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.
A. Decrease
B. Increase
C. Remain unchanged
D. Increase if the person was a lender and decrease if the person was a borrower
6 Assuming that money is neutral an increase in the nominal money supply would causes.
A. An excess supply for goods
B. an increase in the real money supply
C. A fall in the price level
D. A rise in nominal wages
7 In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.
A. fall ; rise
B. fall ; fall
C. rise ; rise
D. rise; fall
8 Which of the following is not included in gorses investment.
A. Business and residential constrcution.
B. Expenditures on consumer goods
C. Additions to business inventory
D. Expenditures on machinery
9 When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.
A. The interest rate will rise
B. The interest rate will decline
C. The price level will not change
D. Investment will decline
10 Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock
A. Raises it because the future marginal productivity of capital is higher
B. Lowers it because the future marginal productivity of capital is lower
C. Raises it because the user cost of capital is now lower
D. Lowers it because the user cost of capital is now higher

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