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

00:00
Question # 1

Quality controlleers at the LMN corporation formulate the null hypothesis that the proportion of defective items in the production line is 10% they reject this hypothesis when they find 12 defective items in 100. If the defective rate is really 10% What type of error did they make.

Question # 2

Which of the following changes shifts the long run aggregate supply curve to the right.

Question # 3

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical.

Question # 4

The reason that only final sales are counted in GDP is

Question # 5

Suppose there is full employment and positively sloped aggregate supply schedule A decrees in taxes increases.

Question # 6

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

Question # 7

By definition, the marginal propensity to consumes.

Question # 8

An efficient economy is an economy

Question # 9

Which of the following assets is most liquid.

Question # 10

If a Canadian dollar costs 0.75 in terms of U.S. dollars, how much Canadian money would an American need to spend in Canada to get a dollar's worth of U.S. value.

Question # 11

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

Question # 12

The long term demand for real money balance will rise when

Question # 13

Industries that are extremely sensitive to the business cycle are the.

Question # 14

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

Question # 15

The substitution effect of a decrease in real interest rates is to cause a consumer to.

Question # 16

Money must fulfill all of the following functions except.

Question # 17

The practice of using fiscal and monetary policy to stabilize the economy is known as.

Question # 18

The impact of contractionary fiscal policy, according to new classical theory is that.

Question # 19

An increase in the marginal propensity to import.

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Which of the following is not a primary cause of business cycle fluctuations according to real business cycle theory.
A. A change in the production function
B. A change in the size of the labor force
C. A change in the money supply
D. A change in the real quantity of government purchases
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 multiplier that applies to changes in autonomous investment is identical to changes in.
A. Autonomous government expenditures
B. Autonomous consumption expenditures
C. Autocoups exports
D. All of the responses above
4 The negative relation ship between unemployment and inflation is know as the
A. Aggregate supply curve
B. Aggregate demand curve
C. Philipps curve
D. Efficiency wage line
5 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.
6 The appropriate expenditure switching policy to correct a balance of payments deficit is.
A. Contractionary monetary policy
B. expansionary fiscal policy
C. Currency devolution
D. Currency revaluation
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 Which of the following actions is an example of expansionary fiscal policy.
A. A decrees in welfare payments
B. A purchase of government scantiest in the open market
C. A decrease in the Bank rate
D. A decrease in the corporate profits tax rates
9 A temporary decrease in government purchases would cause.
A. A rightward shift in the saving curve and a leftward shift in the investment curve
B. A rightward shift in the saving curve and a rightwards shift in the investment curve.
C. A right ward shift in the saving curve but no shift in the investment curve
D. No shift in the saving curve but a left ward shift in the investment curve.
10 The equation for the IS curve is.
A. Y = 55 - 50 i
B. Y = 175 - 75 i
C. Y = 300 - 100 i
D. Y = 275 - 25 i

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