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

The short run aggregate supply curve the absence of misperceptions.

Question # 2

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

Question # 3

An import function is 100+0.1 Y and exports are exogenous. If income (Y) is 500, and there is a trade deficit of 50, then exports are.

Question # 4

An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.

Question # 5

An expenditure increasing policy would consist of an increase in

Question # 6

From a Keynesian perspective business investment will de cline as a result of.

Question # 7

Which of the following factors will cause the demand curve for labor to shift to the right.

Question # 8

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

Question # 9

A temporary decline in productivity would cause the IS curve to.

Question # 10

Which policy is an expenditure switching policy.

Question # 11

An asset with zero carrying costs and a present value of Rs.50,000 will return continuous annual yield of Rs.5000 if the current and future rate of inters is.

Question # 12

The natural rate of unemployed is generally thought of as the.

Question # 13

By definition, the marginal propensity to consumes.

Question # 14

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

Question # 15

The fraction of additional current income that a person consumes in the current period is known as the

Question # 16

Which of the following is incorrect with respect to the consumption diagram.

Question # 17

A nation experiences internal balance if it acieves.

Question # 18

Keynes and Say's macroeconomic theory of employment were diametrically opposed Say state that.

Question # 19

Which one of the following would cause demand pull inflation.

Question # 20

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

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 Find the change in revenue to the industry due to the taxs.
A. Rs. 40 billion
B. Rs. 34 million
C. Rs.25 million
D. Rs.36 Million.
2 The substitution effect of a decrease in real interest rates is to cause a consumer to.
A. Increase future consumption and decrease current consumption
B. Decrease future consumption and increase current consumption
C. Increase current consumption and increase saving
D. Decrease current consumption and increase saving.
3 When the export function is Rs.100-0.2 Y , net exports are 0 when income is .
A. Rs.300
B. Rs.400
C. Rs.500
D. Rs.600
4 The short run impact of unanticipated expansionary monetary policy is that.
A. Real output decrease
B. Employment decreases
C. Real interest rates decrease
D. Profit margins decrease
5 If equilibrium national income is less than the full employment the gap can be closed by.
A. Raising taxes
B. Decreasing government expenditures
C. Raising taxes and decreasing government expenditures.
D. Increasing government expenditures.
6 According to the life cycle hypothesis consumption is related to.
A. Current income
B. Past peak income
C. Expected lifetime income
D. Price expectations over one's life time
7 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.
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 The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a
A. Given rate of inflation
B. Given expected rate on inflation
C. Given level of unemployment
D. Given expected level of unemployment
10 Economics is the science of Wealth who gave this definition.
A. J-x Mehta
B. Marshall
C. Adam Smith
D. Robbins

Test Questions

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