Question # 1

The nominal interest rate minus the inflation rate is the

Choose an answer

Depreciation rate

Discount rate

Forward rate

Real interest rate

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment , caters parabasal increases equilibrium income and the budget.

Choose an answer

Romaic's in balnce

Has a surplus

Has a deficit

None of these

Which of the following actions is an example of expansionary fiscal policy.

Choose an answer

A decrees in welfare payments

A purchase of government scantiest in the open market

A decrease in the Bank rate

A decrease in the corporate profits tax rates

Which of the following solutions does the economist suggest to cost inflation in higher education.

Choose an answer

Cutting professor salaries

Make students live at home

Reduce college from four to three years

B and C

The term household production refers to

Choose an answer

Output produced by forcing children to work

Output produced by workers who are telecommuting

Services provided directly to households such as lawn mowing by landscape companies.

Output produced at home

Full- employment output is the level of output that firms in the economy supply when

Choose an answer

Taxes are zero

Wages and prices have fully adjusted

The unemployment rate in zero

All capital is fully utilized

Given the IS equation Y = Ke a - Ke Bn the IS slope decreases when

Choose an answer

Ke increase and b increases

Ke decreases and b increases

Ke increases and b decreases

Ke decreas4es and b decreases

The sign of the simple correlation coefficient is determined by

Choose an answer

The intercept of the least squares equation.

The slope of the least squares equation

The appropriate economic theory.

The researcher

A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.

Choose an answer

Marginal physical product

Marginal resources cost

Marginal cost

Marginal revenue

The valued of expenditure multiplier relates.

Choose an answer

The change in autonomous spending to the change in income

the change in consumption to change in income

The change in come to the change is consumption

The change in income to the change in autonomous spending.

Which of the following is an example of a productivity shock.

Choose an answer

The introduction of new management techniques

A change in taxes on corporate profits

A change in the level of government transferors

An increase in the money supply

The regression equation for consumption as a function of disposable income is C = -60 + 0.90Y .the standard error of Y is 30 and the standard error of estimate is 9.5 What is the 95% confidence interval for C when Y is Rs. 1000 billion.

Choose an answer

Rs.941 to Rs. 979

Rs.900 to Rs. 1,020

Rs.821 to Rs.859

Rs.780 to Rs.900

The through of a business cycle occurs when ______ hits its lowest point.

Choose an answer

Inflation

The money supply

Aggregate economic activity

The unemployment rate

If the demand for coffee decreases as income decreases, coffee is a

Choose an answer

Normal good

Inferior good

Substitute good

Complementary good

The negative relation ship between unemployment and inflation is know as the

Choose an answer

Aggregate supply curve

Aggregate demand curve

Philipps curve

Efficiency wage line

Quality controlleers at the LMN corporation formulate the null hypothesis that the proportion of defective items in the production line is 10% they reject this hypothesis when they find 12 defective items in 100. If the defective rate is really 10% What type of error did they make.

Choose an answer

Standard error of the mean

A type II error

A type I error

The error probability

An import function is 100+0.1 Y and exports are exogenous. If income (Y) is 500, and there is a trade deficit of 50, then exports are.

Choose an answer

0

25

75

100

Given fixed change rate assume Pakistan initiates expansionary monetary and fiscal polices to combat recession these policies will also.

Choose an answer

Increase both imports and exports

Increase exports and reduce import

Reduce a balance of payments surplus

Reduce a balance of payment deficit

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

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

If the Nominal GNP of an economy rose from Rs. 5000 to 5500 between 1985 and 1986 while the price index rose from 100 to 110 during the same period real GNP

Choose an answer

Fell by 10% from 1985 to 1986

Rose by 10% from 1985 to 1986

Remained constant from 1985 to 1986

Fell by 1% from 1985 to 1986

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