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

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

Question # 2

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

Question # 3

The data indicates that country A in billions of rupees is experiencing a

Question # 4

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

Question # 5

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

Question # 6

Which of the following solutions does the economist suggest to cost inflation in higher education.

Question # 7

The appropriate expenditure switching policy to correct a balance of payment surplus is.

Question # 8

Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i

Question # 9

Which of the following is a NOT component of M-2.

Question # 10

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

Question # 11

Which of the following macro economic variables is procyclical and coincident with the business cycle.

Question # 12

Which of the following is the most liquid.

Question # 13

The aggregate demand curve shows the combinations of output and the price level that put the economy on.

Question # 14

"Economics is a science " the basis of this statement is.

Question # 15

The equation for the IS curve is.

Question # 16

An increase labor supply would cause the IS curve to.

Question # 17

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 # 18

Economic planning by enteral government agencies is primarily associated with

Question # 19

An increase in total production causes the demand for money to _____ and the interest rate to ______

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.
A. Cyclical ; frictional and structural
B. Frictional and cyclical , structural
C. Structural , frictional and cyclical
D. Frictional and structural ; cyclical
2 When a British pound equals Rs. 1.60 and the French France equals Rs. 0.40 the ability to earn infinite profit if it were not the case, implies that the exchange rate would be.
A. 1 franc = 4 pounds
B. 1 franc = 1 pound
C. 5 franc = 1 pound
D. None of the above
3 The fact that the production function relating output to labor becomes flatter as we move 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 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
5 The dynamic aggregate demand schedule shifts rightward when there is an increase in.
A. The expected rate of inflation ceteris paribus
B. The growth rate of the nominal money supply ceteris paribus
C. The income tax rate ceteris paribus
D. the current inflation rate celeries paribus
6 An increase in the real wage rate will cause
A. The labor demand curve to shift to the right
B. The labor demand curve to shift to the left
C. The quantity of labor demanded to rise
D. A movement along the labor demand curve
7 A rise in the price of bond causes the yield of the bond to.
A. Rise
B. Fall
C. Remain unchanged
D. Rise uf ut's a short term bond, fall if it's a long term bond
8 "Economics is a science " the basis of this statement is.
A. Relation between causes and effect
B. Use of deductive method and inductive method for the formations of laws
C. experiments
D. All of the above
9 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.
10 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

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