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

  • Total Questions20

  • Time Allowed20

PPSC Economics Topic 3 Macro Economics

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Question # 1

The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.

Question # 2

In closed economic model aggregate demand is not sensitive to.

Question # 3

The valued of expenditure multiplier relates.

Question # 4

Industries that are extremely sensitive to the business cycle are the.

Question # 5

The government budget surplus equals

Question # 6

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

Question # 7

Fractional unemployment arises when

Question # 8

The gift exchange motive suggests that

Question # 9

In the long run an increase in consumer spending would cause output to ________ and the price level to.___________

Question # 10

The long run aggregate supply curve.

Question # 11

According to the efficiency wage model during a recession firms will not reduce real wages because.

Question # 12

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Question # 13

To ensure that the fundamental identity of national income accounting holds changes in inventories are.

Question # 14

The appropriate expenditure switching policy to correct a balance of payments deficit is.

Question # 15

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

Question # 16

The fact that the production function relating output to labor becomes flatter as we move from left to right means that.

Question # 17

The term household production refers to

Question # 18

Money must fulfill all of the following functions except.

Question # 19

The short run aggregate supply curve the absence of misperceptions.

Question # 20

The Laffer curve depicts

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An increase in the real wage rate will cause.
A. The labor demand curve to shift to the right
B. The labor demand curve to shift to the left
C. The quantity of labor demanded to rise
D. A movement along the labor demand curve
2 During inflation.
A. Lenders lose borrowers gain.
B. Borrowers lose , lenders gain
C. The real interest rate rises
D. Borrowers and lenders both lose.
3 The nominal interest rate minus the inflation rate is the
A. Depreciation rate
B. Discount rate
C. Forward rate
D. Real interest rate
4 Firms hire labor at the point where the
A. Nominal wage rate equals the marginal product of labor
B. Real wage rate equals the marginal revenue product of capital
C. Nominal wage rate equals the marginal revenue product of labor
D. Real wage rate equals the marginal revenue product of capital
5 An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.
A. Discourse
B. Federal funds
C. Reserves
D. Collateral
6 According to Keynesians the primary source of business cycle fluctuation is.
A. Aggregate demand shocks
B. Productivity shocks
C. Oil price shocks
D. Consumer confidence shocks
7 Which one of the following would cause demand pull inflation.
A. Increases iin production costs
B. Wage gains in proportion productivity gains
C. An increase in aggregate demand with shortages of sup ply
D. Monoposonistic labor markets
8 Which of the following macroeconomic variables is procyclical and lags the business cycle.
A. Business fixed investment
B. Empolyment
C. Stock prices
D. Nominal interest rates
9 Where there is an equal increase in net tax revenue and government spending, ceteris paribus.
A. (C+I+G) is shifting upward
B. (C+I+G) is shifting downward
C. (C+I+G) does not shift
D. All of these
10 The fac that the production function relating output to labor becomes flatter as wemove 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

Test Questions

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