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

Try The 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

You move some of your savings account balance into your checking account.

Question # 2

Believers in the monetarist rule assert that

Question # 3

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

Question # 4

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

Question # 5

As a result of the increase in government expenditures disposable income increases by.

Question # 6

Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.

Question # 7

Weighted monetary aggregates

Question # 8

The largest source of tax revenue for the federal government is.

Question # 9

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

Question # 10

If firms paying employees monthly began paying them weakly then the demand for money would.

Question # 11

Per Capita income is obtained by dividing National income by

Question # 12

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

Question # 13

Which of the following would qualify as an aggregate supply shock.

Question # 14

You know that all taxes are distortionary under what conditions will this knowledge lead you to appose the imposition of every single tax in the economy.

Question # 15

A state of government bonds by the central bank should cause

Question # 16

An increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the.

Question # 17

The central bank and the government are working against each other if as the government cuts taxes the central bank

Question # 18

An example of discretionary fiscal policy would be.

Question # 19

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

Question # 20

A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 A decrease in fully autonomous investment other things equal shifts the ______ curve to the
A. IS ; right
B. IS ; Left
C. LM ; Left
D. LM ; right
2 In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.
A. up ; left
B. up ; right
C. down ; left
D. down ; right
3 What is the significance of underestimating transactions money.
A. Monetary policy will be over simulating the economy
B. Monetary policy will be putting a drag on the economy
C. there is a need for money that the central bank should be meating.
D. The economy has too much money and there frore not enough spending.
4 Which school of economic thought suggested that one possible cause of inflation was a push from the cost side.
A. New classical economists
B. Monetarists
C. Marxists
D. Keynesians
5 The IS curve shifts to the left when
A. Taxes increase
B. Government spending increase
C. The money supply increases
D. All of the above occur
6 Disposable income is obtained by subtracting ________ taxes from personal income
A. Indirect taxes
B. Direct taxes
C. Subsidies
D. None
7 If the State bank of Pakistan wished to pursue a light monetary policy it would.
A. Lower the required reserve ratio and the statutory liquidity ratio.
B. Lower interest rates
C. Buy government securities on the open market
D. Sell government securities on the open market
8 Credit constitutes.
A. Saving made available to borrowers
B. A form of liquid asset
C. bank loans converted into commodity money
D. Money used as a standard of deferred payment.
9 At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.
A. Less ; higher ; output.
B. more ; higher ; output
C. less ; lower ; unplanned investment
D. more ; lower ; unplanned investment
10 An increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the.
A. Revenue from value added tax
B. Level of company profits
C. Level of unemployment
D. Average level of wages

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