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

Economists use the phrase ceteris paribus to express the assumption.

Question # 2

When a person received an increase in wealth, what is likely to happen to consumption and saving.

Question # 3

Utility means.

Question # 4

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment , caters parabasal increases equilibrium income and the budget.

Question # 5

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

Question # 6

A technological improvement will

Question # 7

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

Question # 8

The MPS = 0.4 and government spending increases by 20 billion. The LM curve

Question # 9

Under law of demand.

Question # 10

A temporary adverse productivity shock would.

Question # 11

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 # 12

Peaks and trough of the business cycle are known collectively as.

Question # 13

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

Question # 14

Which of the following macroeconomic variables is procyclical and lags the business cycle.

Question # 15

In the short run in the Keynesian model a sharp increase in oil prices would leave the economy with a ____ level of output and a ______ real interest rate.

Question # 16

A model in which individual producers act as price setters because there are only a few sellers and the product they sell is not standardized, is called.

Question # 17

If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.

Question # 18

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

Question # 19

The nominal interest rate minus the inflation rate is the

Question # 20

Which of the following procedures is included in the process that produces a value for disposable personal income

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________
A. Shift down and to the left be unchanged
B. Shift down and to the left shift left
C. Shift up and to the right be unchanged
D. Shift up and to the right shift left
2 In the long run, an increase in productivity would cause output to _________ and the aggregate price level to
A. fall ; rise
B. fall ; fall
C. rise ; fall
D. rise ; rise
3 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
4 An increase labor supply 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 if people face borrowing constraints
5 Expansionary monetary policy
A. Tends to lead to an appreciation of nation's currency
B. Usually has no effect on a currency's exchange value
C. Tends to lea dto a depreciation of the currencies of other nations
D. Tends to lead to a depreciation of a nation's currency.
6 The use of micro economics policies to smooth or moderate the business cycle is known as.
A. Aggregate demand management.
B. Aggregate supply management
C. Automatic stabilization
D. Discretionary policy
7 The nominal interest rate minus the inflation rate is the
A. Depreciation rate
B. Discount rate
C. Forward rate
D. Real interest rate
8 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.
9 What tow factors should you equate in deciding how many workers to employ.
A. The marginal product of labor and the marginal product of capital
B. The marginal product of labor and the real wage rate
C. The marginal product of labor and the real interest rate
D. The marginal product of capital and the real wage rate
10 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.
A. Rs.941 to Rs. 979
B. Rs.900 to Rs. 1,020
C. Rs.821 to Rs.859
D. Rs.780 to Rs.900

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