PPSC Economics Topic 3 Macro Economics

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

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Shiza Amir 25 - May - 2022 02 Min 01 Sec 19/20
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Amjad Ali 07 - Jun - 2023 07 Min 07 Sec 13/20
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zaheer hussain 16 - Jan - 2024 16 Min 32 Sec 10/20
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Atiq Ur Rahman 16 - Jun - 2023 19 Min 23 Sec 10/20

PPSC Economics Chapter 3 Important MCQ's

Sr.#	Question	Answer
1	Which of the following changes shifts the AD curve up and to the right.	A. A rise in the nominal money supply B. An increase in income taxes C. An increase in the risk on nonmonetary assets D. A decreasing the future marginal productivity of capital.
2	If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is	A. Rs.4,500 B. Rs. 575 C. Rs.500 D. Rs. 4,575
3	In the Keynesian model in the long run an increase in the money supply will raise	A. The price level but not the level of output B. The level of output but not the price level C. Both the level of output and the price level D. Neither the level of output nor the price level
4	All of the following are obstacles to international economic policy coordination except.	A. Different national objectives are institutions B. Different national political climates C. Different phases in the business cycle D. Different national currencies.
5	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
6	Over a two year period your income has increased 10% At the same time the consumer price index has increased 205 Your real purchasing power is.	A. 92% of the original value B. 50% of its original value C. Not affected by the price change D. 109% of its original value
7	An economy is in inflationary equilibrium A sustained increase in government appending shifts.	A. DAD rightward for one period B. DAD and DAS right ward permanently C. DAD right ward and a new equilibrium D. DAD right ward and a new equilibrium.
8	The reason that only final sales are counted in GDP is	A. To avoid double counting good that are sold so as to be resold B. To not count production in other countries C. Because the government can't get records on intermediate sales. D. To simplify the computation and no other reason
9	When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.	A. Is unrelated to the rate of interest B. Is positively related to the rate or interest C. Inversely related to the rate of interest D. Falls as the rate of interest decreases
10	When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.	A. Rs.90 B. Rs.400 C. Rs.500 D. Rs.900

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PPSC Economics Topic 3 MCQS Test Preparation

MCQ's Test For PPSC Economics Topic 3 Macro Economics

PPSC Economics Topic 3 Macro Economics

Which of the following results in an increase in the value of the dollar.

Equilibrium occurs in a two sector model when

The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that.

What is the level of savings for disposable income = Rs.5,000 if dissaving's of 50 occur at a disposable income of Rs.0 and a marginal propensity to save equal to 0.257

Keynesian economists think general equilibrium is not attained quickly because.

Which of the following represents monetary policy geared to increases the supply of money.

The aggregate demand curve

Whose opinions have revolutionized the scope of macro economics.

Find the revenue the government collects as a result of the tax

A Rs.10 increase in autonomous investment spending shifts is.

In the long run, an increase in productivity would cause output to _________ and the aggregate price level to

The yield curve shows

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

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

The value of real GDP in the current year equals.

According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.

Classical economics think general equilibrium is attained relatively quickly because.

What is the possible cause for a falling real GNP over a period of time.

When all markets in the economy are simultaneously in equilibrium we say.

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.

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

PPSC Economics Chapter 3 Important MCQ's

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According to classical economists unemployment rises in recessions due to an increase in unemployment , not in _ unemployment.