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

An increase in the real wage rate will cause

Question # 2

For interior commodities income effect is.

Question # 3

If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.

Question # 4

The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.

Question # 5

When aggregate economic activity increasing the economy is said to be in.

Question # 6

Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.

Question # 7

In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by

Question # 8

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

Question # 9

An increase in the marginal propensity to import.

Question # 10

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 # 11

A Rs.10 increase in autonomous investment spending shifts is.

Question # 12

A temporary decrease in government purchases would cause.

Question # 13

An invention that speeds up the internet is an example of.

Question # 14

In the long run a reduction in labor supply would cause output to _______ and the aggregate price level to.

Question # 15

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

Question # 16

Using the Keynesian model the effect of an increase in the effective tax rate on capital would be to cause _________ in the real interest rate and ______ in output in the short run.

Question # 17

The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.

Question # 18

A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the.

Question # 19

If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75

Question # 20

Given the data above, the empirical equation for the IS curve is.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 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
2 Friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but here should be a stable relationship between
A. Anticipated inflation and frictional unemployment
B. Anticipated inflation and cyclical unemployment
C. Unanticipated inflation and frictional unemployment.
D. Unanticipated inflation and cyclical unemployment
3 According to Keynesian macro economics price adjust _____ to shocks, so the government should.
A. Slowly ; do little
B. Rapidly ; do little
C. Rapidly ; fight recessions
D. Slowly ; fight recessions
4 Money must fulfill all of the following functions except.
A. Be a medium of exchange
B. Be a store of value
C. Be generally accepted as a means of purchasing commodities
D. The above are all functions of money
5 The aggregate demand curve shows the combinations of output and the price level that put the economy on.
A. The FE line and the IS curve
B. The FE line The IS curve and the LM curve
C. The IS curve
D. The IS curve and the LM curve
6 An economy is in inflationary equilibrium A sustained increase in government appending shifts.
A. DAD rightward for one period
B. DAD and DAS right ward permanently
C. DAD right ward and a new equilibrium
D. DAD right ward and a new equilibrium.
7 An increase in the expected future marginal product of capital would cause the IS curve to.
A. Shift up and to the right
B. Shift down and to the left
C. Remain unchanged if firms face borrowing constraints otherwise shift down and to the left
D. Remain changed
8 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.
A. Higher ; lower
B. Lower ; Higher
C. Higher ; higher
9 The idea that the natural rate of unemployment rises when the acual rate of unemployment rise is known s.
A. Stabilization
B. Insider outsider theory
C. Hysteresis
D. an efficiency wage model
10 A decrease in wealth would cause the IS curve to
A. Shift up and to the right
B. Shift down and to the left
C. Remain unchanged
D. Shift up and to the right only in poeple face borrowing constraints.

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