PPSC Economics Topic 1 MCQS Test Preparation

PPSC Economics test is comprised of questions related to the economics subject and general knowledge questions. The PPSC test is, somehow, tough but candidates who prepare properly can easily cover the test. The test is comprised of 100 MCQs and candidates are required to get the maximum of marks to beat the set criteria and competition. In order to get excellent preparation in chapter I of the Economics subjects the team of Ilmkidunya has arranged PPSC online tests. On this page, the candidates can find the online test of chapter I. However, for other chapters’ tests, you will find separate sections and pages. The online test is comprised of 20 MCQs and candidates are offered 20 minutes to cover the test. In this way, candidates get the practice that how to cover the test within the given timeframe.

MCQ's Test For PPSC Economics Topic 1 Basic Economics

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PPSC Economics Topic 1 Basic Economics

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Question # 1

The law of diminishing returns assumes.

Question # 2

Economists use the term marginal utility to mean.

Question # 3

A public good

Question # 4

If a few firms dominate an industry the market is known as.

Question # 5

Injection are

Question # 6

If the price was fixed below the equilibrium price there would be.

Question # 7

What makes economics scientific.

Question # 8

In a recession, GDP.

Question # 9

The natural rate of unemployment is likely to tall if

Question # 10

An increase in interest rates.

Question # 11

The price mechanism does not act as a

Question # 12

If the economy grows the government's budget position will automatically

Question # 13

In a Boom

Question # 14

As the MPS increases, the multiplier will

Question # 15

To be productively efficient a firm must produce where

Question # 16

Which of the following is a policy instrument .as opposed to a government objective.

Question # 17

Labour productivity measures.

Question # 18

An independent assessment of the impact of firm's activities on society is called a.

Question # 19

Which of the following is not a supply side measure.

Question # 20

If inflationary expectations increase, the short run Phillip's curve will

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Economics
1st Chapter

PPSC Economics Chapter 1 Test

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PPSC Economics Chapter 1 Important MCQ's

Sr.# Question Answer
1 If demand increase in a market this will usually lead to.
A. A higher equilibrium price and output
B. a lower equilibrium price and higher output
C. A lower equilibrium price and output.
D. A higher equilibrium price and lower output
2 Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.
A. An fall in demand
B. An increase in supply
C. Improvements in production technology
D. An increase in demand
3 The best describes consumer surplus.
A. The price consumers are willing to pay for a unit
B. The cost of providing a unit.
C. The profits made by a firm
D. The difference the price a consumer pays for an item and the price he is willing to pay.
4 Barriers to entry do not include
A. Patents
B. Internal economics of scale
C. Mobility of resources
D. High investment costs
5 The first level of output at which the long run average costs are minimized is called.
A. The minimum Efficient Scale
B. The minimum External scale
C. The Maximum External scale
D. The maximum Effective scale.
6 In a command economy
A. The price mechanism acts as an incentive
B. Resources are allocated by market forces
C. Individual firms make decisions for themselves about what to produce and how to produce it.
D. The public sector is large
7 Earning from primary products are often unstable because.
A. Demand is price elastic
B. Supply is price elastic
C. Supply conditions are relatively stable
D. Supply conditions are unstable
8 If marginal cost is positive and falling.
A. Total cost is falling
B. Total cost is increasing at a falling rate
C. Total cost is falling at a falling rate
D. Total cost is increasing at an increasing rate.
9 Profit making is basic motive in.
A. Socialism
B. Mixed economy
C. Communism
D. Capitalism
10 An increase in the wage rate.
A. Will usually lead to more people employed
B. Will decrease total earnings if the demand for labour is wage elastic
C. Is illegal in a free market
D. Will cause a shift in the demand for labour

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