More Classes
5th Class
6th Class
7th Class
8th Class
9th Class
10th Class
11th Class
12th Class
NAT I
NAT II
CSS
IQ
General Knowledge
MDCAT
ECAT
GAT General
GAT Subject
Other Links
Go to Home
Online Tests
PPSC Economics Chapter 3 Macro Economics MCQs With Answers
Question # 1
In the efficiency wage model with the efficiency wage above the market clearing wage when employment is at its full employment level.
Choose an answer
Labor supply equals labor demand
There is an excess supply of labor
there is an excess demand for labor
There could be either an excess demand for or an excess supply of labor
Previous
Skip
Next
Question # 2
Which of the following methods is used for internalizaing positive externalities
Choose an answer
Positive taxes
Government exchange of property rights
Effluent fees
Corrective substidies
Previous
Skip
Next
Question # 3
The measured of GDP includes
Choose an answer
Non market goods such as home making and child rearing
The benefits of clean air and water
Estimated values of activity in the underground economy
Purchases and sales of goods produced in previous periods
Previous
Skip
Next
Question # 4
The multiplier which specifically refers to an equal increase in government spending and taxes, giving rise to that same equal increase in national income is called.
Choose an answer
the Keynesian multiplier
The balanced budget multiplier
the deficit multiplier
None of the above
Previous
Skip
Next
Question # 5
When the value of output exceeds planned spending .
Choose an answer
There is unsold output, and the level of income will fall
there is unsold output and the level of income will rise
There is unsold output, and the level of income does not change.
All of the above
Previous
Skip
Next
Question # 6
To avoid double counting when the GNP is estimated, economists
Choose an answer
Price all goods and services bought and sold in all markets
Use the GNP deflator
Price only intermediate goods
Calculate value added at each stage of production.
Previous
Skip
Next
Question # 7
Disinflationary demand management policies.
Choose an answer
Achieve a lower rate of inflation without causing a decreases in output.
Reduce output but have no initial effect on the inflation rate
Require an increase in government spending.
Require a reduction in the growth rate of the nominal money supply.
Previous
Skip
Next
Question # 8
The marginal product of labor
Choose an answer
Is measured by the slope of the production function relating capital of employment
Is larger when the labor supply is relatively larger
Is smaller when the labor supply is relatively smaller
Decreases as the number of workers already employed increases
Previous
Skip
Next
Question # 9
Which of the following changes shifts the AD curve down and to the left.
Choose an answer
A temporary increase in government purchases.
A rise in the nominal money supply
A decrease in corporate taxes
A decrease in consumer confidence
Previous
Skip
Next
Question # 10
Which policy is an expenditure switching policy.
Choose an answer
Increase in the money supply
Decrease in government expensitures
Increase in business and household taxes
Decrease in import tariffs
Previous
Skip
Next
Question # 11
Real business cycle theorists think that most business cycle fluctuations are caused by shocks to.
Choose an answer
The production function
The size of the labor force
The real quantity of government purchases
The spending and saving decisions of consumers
Previous
Skip
Next
Question # 12
Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.
Choose an answer
The break even level of income is 240
Dissaving takes place if income is 300
Consumption expenditures and saving are equal at an income level of 500
The MPS is constant for all levels of income
Previous
Skip
Next
Question # 13
Which of the following is a NOT component of M-2.
Choose an answer
Small time deposited
Money market mutual funds
Stocks
Checkable deposits
Previous
Skip
Next
Question # 14
Keynesian economists think general equilibrium is not attained quickly because.
Choose an answer
The real interest rate adjusts slowly
The level of output adjusts slowly
The real wage rate adjusts slowly
The price level adjusts quickly
Previous
Skip
Next
Question # 15
In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.
Choose an answer
Government payments for goods produced by foreign firms
Government payments for goods produced by firms owned by state of local governemnt
Government payments for welfare
All government payments are included in GDP
Previous
Skip
Next
Question # 16
The MPS = 0.4 and government spending increases by 20 billion. The LM curve
Choose an answer
Shifts to the right by 20 billion
Shifts to the right by 50 billion
Does not shift
shifts to the left by 30 billion
Previous
Skip
Next
Question # 17
Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.
Choose an answer
Positive serial correlation
the presence of multicollinearity
No serial correlation
Negative serial correlation
Previous
Skip
Next
Question # 18
When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.
Choose an answer
Is unrelated to the rate of interest
Is positively related to the rate or interest
Inversely related to the rate of interest
Falls as the rate of interest decreases
Previous
Skip
Next
Question # 19
Economics is the science of Wealth who gave this definition.
Choose an answer
J-x Mehta
Marshall
Adam Smith
Robbins
Previous
Skip
Next
Question # 20
Classical economics think general equilibrium is attained relatively quickly because.
Choose an answer
The real interest rate adjusts quickly
The level of output adjusts quickly.
The real wage rate adjusts quickly
The price level adjusts quickly.
Previous
Skip
Next
Question # 21
In a private sector model
Choose an answer
Household saving is a leakage from the circular flow
Investment is a spending injection
All of the above
None of the above
Previous
Skip
Next
Back