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

  • Total Questions20

  • Time Allowed20

PPSC Economics Topic 3 Macro Economics

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Question # 1

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

Question # 2

In the short run an increase in export sales would cause output to ______ and the price level to.

Question # 3

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

Question # 4

When desired national saving equals desired national investment what market is in equilibrium.

Question # 5

Capital goods are

Question # 6

Using the Keynesian model , the effect of a decrease in the effective tax rate on capital would be to cause_____ in the real interest rate and __ in output in the long run.

Question # 7

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

Question # 8

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 # 9

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

Question # 10

In a simple Keynesian world assume the economy is opiating at a full employment noninflationary level worsening world conditions necessitate additional government spending of Rs.50 billion. What should be the direction of change in taxes and magnitude of change to maintain stable price and full employment equilibrium.

Question # 11

Whose opinions have revolutionized the scope of macro economics.

Question # 12

The break even level of income where C = Y is

Question # 13

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

Question # 14

An efficient economy is an economy

Question # 15

Equilibrium occurs in a two sector model when

Question # 16

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

Question # 17

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

Question # 18

Which of the following changes shifts the AD curve up and to the right.

Question # 19

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

Question # 20

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

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Top Scorers Of PPSC Economics Topic 3 Macro Economics MCQ`s Test

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An increase in the expected real interest rate tends to.
A. Raise desired saving only
B. Raise desired investment only
C. Raise both desired savings and desired investment
D. Raise desired savings, but lower desired investment.
2 Fractional unemployment arises when
A. Unskilled or low skilled workers find it difficult to obtain desirable long term jobs
B. Labor must be reallocated from industries that are shrinking to areas that are growing.
C. Workers must search for suitable jobs and firms must search for suitable workers.
D. Output and employment are below full employment levels
3 The risk free rate of interest would not be affected by.
A. Changes in real output
B. Change in the money supply
C. Term to maturity
D. None of the above
4 The nominal interest rate minus the inflation rate is the
A. Depreciation rate
B. Discount rate
C. Forward rate
D. Real interest rate
5 Which of the following macro economic variables is procyclical and coincident with the business cycle.
A. Residential investment
B. Nominal interest rates
C. Industrial production
D. Unempolyment
6 An expansionary supply side shock results in.
A. An increased real national income
B. The aggregate supply curve shifting to the left
C. The aggregate demand curve shifting to the right
D. The aggregate demand curve shifting to the left
7 In a private sector model
A. Household saving is a leakage from the circular flow
B. Investment is a spending injection
C. All of the above
D. None of the above
8 The costs of disinflation would be low if
A. Expected inflation falls as inflation falls
B. Wages and price controls were used
C. The Phillips curve were nearly horizontal
D. The Phillips curve adjusted slowly to changes in inflation
9 Peaks and trough of the business cycle are known collectively as.
A. Volatility
B. Turning points
C. Equilibrium point
D. Real business cycle events
10 Given fixed change rate assume Pakistan initiates expansionary monetary and fiscal polices to combat recession these policies will also.
A. Increase both imports and exports
B. Increase exports and reduce import
C. Reduce a balance of payments surplus
D. Reduce a balance of payment deficit

Test Questions

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