PPSC Economics Topic 4 MCQS Test Preparation

Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Topic 4 Monetary & Fiscal Policy

00:00
Question # 1

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

Question # 2

The opportunity cost of holding currency decreases when.

Question # 3

The IMF is an agency charged with providing.

Question # 4

In economics money refers to

Question # 5

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

Question # 6

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____

Question # 7

An increase in spending those results from expansionary _______ policy cause the interest rate to.

Question # 8

Which of the following measures is the best measure of money as a medium of exchange.

Question # 9

Actual equilibrium is Rs. 1,500 billion and full employment is Rs. 2,500 MPC = 0.75 taxes are zero , and prices are adjustable To eliminate the observed deflationary gap , the government should.

Question # 10

The near term effect of an unexpected sale of bonds by the central bank is.

Question # 11

During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.

Question # 12

The opportunity cost of holding currency decrease when

Question # 13

The limit of an economy's total productive capacity at any given time is set by

Question # 14

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the

Question # 15

A good that is used as a medium of exchange as well as being a consumption good is called.

Question # 16

According to Marshall the basis of consumer surplus is.

Question # 17

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

Question # 18

An autonomous increase in money demand.

Question # 19

An increase in the money supply shifts the LM curve to the right causing the interest rate to __________ and output to.

Question # 20

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.
A. decreases ; right
B. decreases ; fall
C. increases ; rise
D. increases ; fall
2 An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the
A. rise ; LM ;right
B. rise ; IS ; right
C. fall ; LM, Left
D. rise ; IS ; Left
3 Per Capita income is obtained by dividing National income by
A. Total labor Force in the country
B. Unemployed Youth in the country
C. Total population of that country
D. None
4 What happens to the money supply if the deficit is financed by selling bonds to the general public.
A. The money supply increaes
B. The money supply decreases
C. The money supply is unaffected
D. We cannot tell what will happen to the money supply
5 "Transactions" money is money used as a
A. Store of value
B. Unit of account
C. Medium of exchange
D. Standard of deferred payment
6 An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports
A. Less ; decreases
B. Less ; increases
C. More ; decreases
D. more ; increases
7 An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the
A. right ; left
B. right ; right
C. left ; left
D. left ; right
8 Intermediate goods are meant for
A. Direct use by the consumers
B. Further processing
C. The term do not exist
D. None
9 During period of inflation
A. Those people who have fixed incomes benefit
B. Every one's real income falls
C. those people who enter long term wage agreements benefit
D. Those people whose real income rises faster than the general price level benefit
10 How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.
A. Rs.1 billion
B. Rs.2 billion
C. Rs.0.9 billion
D. Rs.0.5 billion

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