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

Question # 2

As the economy nears full capacity the short run aggregate supply curve

Question # 3

The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.

Question # 4

You are gold the level of savings in the economy is Rs.25 billion of equilibrium Using the consumption function C =20 + .9 Y, find equilibrium income .

Question # 5

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

Question # 6

According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.

Question # 7

If the foreign interest rate is 12% while the domestic interest rate in 95 then the forward premium will be.

Question # 8

The key difference between classical and Keynesian macro economist is their differing beliefs about.

Question # 9

What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%

Question # 10

The two main characteristics of the production function are.

Question # 11

Which of the following will not result in an increase in the level of income.

Question # 12

Country A 's GNP is increasing by 3% a year in contrast to its population growth of 2.4% The rate of growth of per capita GNP is.

Question # 13

An increase in the expected future marginal product of capital would cause the IS curve to.

Question # 14

Wars new inventions, harvest failures, and change sin government policy are examples of.

Question # 15

If the expected inflation rate is unchanged a fall in the natural rate of unemployment would.

Question # 16

The regression equation for consumption as a function of disposable income is C = -60 + 0.90Y .the standard error of Y is 30 and the standard error of estimate is 9.5 What is the 95% confidence interval for C when Y is Rs. 1000 billion.

Question # 17

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

Question # 18

Total factor productivity growth is that part of economic growth due to.

Question # 19

The estimated regression coefficient for good Y indicates

Question # 20

The low point in the business cycle is referred to as the

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 A Rs.10 increase in autonomous investment spending shifts IS
A. Rightward by Rs.10
B. Leftward Rs.10
C. Rightward by Ke (Rs.10)
D. Leftward by Ke (Rs.10)
2 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
3 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.
4 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.
A. An increase ; an increase
B. A decrease ; a decrees
C. No change ; an increase
D. No change ; a decrease
5 The three main components of the aggregate demand aggregate supply model include.
A. AD, SRAS, LM
B. SRAS, LRAS, IS
C. AD, IS, LM
D. AD, SRAS, LRAS
6 When aggregate economic activity increasing the economy is said to be in.
A. An expansion
B. A contraction
C. A peak
D. A turning point
7 Deflation occurs only when
A. Some prices fall but average prices still rise
B. All prices for all goods fall
C. The average price level falls
D. The average price level increases bat at a slower rate than before
8 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
9 Keynes considered subjective and objective factors.
A. Determinants of investment
B. Determinants of business will ingress to supply
C. Unimportant determinants of consumption.
D. Important determinants of consumption.
10 The marginal product of labor
A. Is measured by the slope of the production function relating capital of employment
B. Is larger when the labor supply is relatively larger
C. Is smaller when the labor supply is relatively smaller
D. Decreases as the number of workers already employed increases

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