Question # 1

Which of the following is the most liquid.

Choose an answer

A savings account

A 6 months CD

A home

Water

Find the change in revenue to the industry due to the taxs.

Choose an answer

Rs. 40 billion

Rs. 34 million

Rs.25 million

Rs.36 Million.

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

Choose an answer

Ignored

Counted as consumption

Treated as part of saving

Treated as part of expenditure

An increase in the expected real interest rate tends to.

Choose an answer

Raise desired saving only

Raise desired investment only

Raise both desired savings and desired investment

Raise desired savings, but lower desired investment.

While resources and products flow in one direction of the circular flow model what flow the other direction.

Choose an answer

Services

Public goods

Money

Imported goods

"Economics is what economists do " It has been supported by.

Choose an answer

Richard jones

Comte

Gunnar Myrdal

All of the above

For a borrower an increase in the real interest rate will lead to.

Choose an answer

Higher current consumption and less borrowing

Higher current consumption and less saving

Lower current consumption and less borrowing

Lower current consumption and less saving

The practice of using fiscal and monetary policy to stabilize the economy is known as.

Choose an answer

Fine turning of deamand

Monetarism

Laissez faire economics

Supply side economics

If nominal GNP were Rs.1000 ballooning 1976 and Rs.2200 billion in 1986, and the implicit GNP deflator was. 1.2 in 1976 and 1.6 in 1986 concluded that .

Choose an answer

Real GNP increased by approximately Rs. 542 billion from 1976 to 1986

The price level fell from 1976 to 1986

Real GNP increased by 35%

Nominal GNP increased by 80%

In a mixed economy the economic decisions of what to produce how to produce, and who will receive products are made by

Choose an answer

The government

Consumers and firms

Banks and stock markets

Firms, consumers, and government.

O kun's Law states that for each percentage point by which the unemployment rate is above the natural rate real GNP is 3% below potential GNP, if real GNP is Rs. 3,800 billion with the actual level of unemployment at 6.05 and the natural rate of unemployment at 4.5% then according to Okun's law the GNP gap is.

Choose an answer

171 billion

684 billion

114 billion

228 billion

According to classical economists the economy.

Choose an answer

Requires fine tuning to reach full employment

Should not be left to market forces

Will never be at full employment

Is self correction

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

The equation for a givne production function is Q = K2 + KL, initially K = 2 and L = 1 if the value of both inputs is doubted the production function exhibite.

Choose an answer

Increasing returns to scale

Diseconomies of scale

Constant returns to scale

Economies of scale

The data indicates that country A in billions of rupees is experiencing a

Choose an answer

A deficit of Rs.60

A surplus of Rs. 300

Deficit of Rs.900

A deficit of Rs. 500

Which of the following does not result in an increase in U.S. autonomous net exports.

Choose an answer

The U.S. dollar depreciated

Major trading partners stimulate their economy

Foreign currencies depreciate

Foreign trading partners lift tariff barriers

Which theory is generally included under micro economics.

Choose an answer

Price theory

Income theory

Employment theory

None of the above

Which of the following macro economic variables doesn't vary much ove the seasons.

Choose an answer

The nominal money stock

The unemployment rate

The real wage

Average labor productivity

Company X sells Rs.75 million dollars of 9.5% first mortgage bonds at par The company's marginal tax rate to 30% The after tax cost of debt is.

Choose an answer

2.85%

3.175

6.68%

7.55

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

The econometric problem of errors in variables leads to

Choose an answer

Ballasted estimates of regression coefficients.

Autocorrelation

Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.

None of the above

More Classes

Other Links

PPSC Economics Chapter 3 Macro Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer