PPSC Economics Chapter 3 Macro Economics With Answers

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PPSC Economics Chapter 3 Macro Economics

Sr. # Questions Answers Choice
1 "Economics is a science " the basis of this statement is. Relation between causes and effect Use of deductive method and inductive method for the formations of laws experiments All of the above
2 "Human Welfare is the subject of Economics" Y. This statement is associated with the name of which of the economists. Marshall Pigou Pension All of the above
3 Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will. Increase both interest rates and GNP Reduce both interest rates and GNP Increase GNP but cause interest rates to tall Increase interest but cause GNP to fall.
4 The major source of revenue for the government is. the collection of property taxes The collection of the corporates income tax The collection of excise taxes on gasoline cigarettes and tires The collection of import and export duties in the conduct of foreign trade
5 "Economics is what economists do " It has been supported by. Richard jones Comte Gunnar Myrdal All of the above
6 Economics is the science of Wealth who gave this definition. J-x Mehta Marshall Adam Smith Robbins
7 Which of the following procedures is included in the process that produces a value for disposable personal income subtracting excies and sales taxes Subtracting nonbusiness interest Subtracting transfer payment from government. subtracting income taxes
8 According to classical economists the economy. Requires fine tuning to reach full employment Should not be left to market forces Will never be at full employment Is self correction
9 The practice of using fiscal and monetary policy to stabilize the economy is known as. Fine turning of deamand Monetarism Laissez faire economics Supply side economics
10 A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called. New Keynesians Keynesians Monetarists The Classical shool
11 Money must fulfill all of the following functions except. Be a medium of exchange Be a store of value Be generally accepted as a means of purchasing commodities The above are all functions of money
12 Which of the following assets is most liquid. Shares of stock in IBM Land Gold Currency
13 All of the following are obstacles to international economic policy coordination except. Different national objectives are institutions Different national political climates Different phases in the business cycle Different national currencies.
14 The appropriate expenditure switching policy to correct a balance of payments deficit is. Contractionary monetary policy expansionary fiscal policy Currency devolution Currency revaluation
15 The appropriate expenditure switching policy to correct a balance of payment surplus is. Currency revaluation Currency devaluation Expansionary monetary policy Contractionary fiscal policy
16 Given fixed change rate assume Pakistan initiates expansionary monetary and fiscal polices to combat recession these policies will also. Increase both imports and exports Increase exports and reduce import Reduce a balance of payments surplus Reduce a balance of payment deficit
17 An expenditure reducing policy would consist of a decrease in The par value of a currency Government expenditures Import duties Business or household taxes
18 An expenditure increasing policy would consist of an increase in Import tariffs Import quotas Governmental taxes The money supply
19 Which policy is an expenditure switching policy. Increase in the money supply Decrease in government expensitures Increase in business and household taxes Decrease in import tariffs
20 Most industrial construes generally considered _______ as the most important economic goal External balance Internal balance Maximum efficiency for business Maximum efficiency for labor
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