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

Try The 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

Inflation.

Question # 2

Which of the following is true.

Question # 3

If firm earn normal profits.

Question # 4

The hypothesis that people know the true model of the economy and that they use this model and al available information to form their expectations of the future is the

Question # 5

What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.

Question # 6

The demand for a product would be more inelastic.

Question # 7

An increase in interest rates.

Question # 8

Increase un employment benefits and less incentive to work would.

Question # 9

If the price elasticity is -0.3 this means.

Question # 10

In a recession, GDP.

Question # 11

The diamond water paradox can be explained by suggesting that the price of a product is determined by.

Question # 12

The natural rate of unemployment is likely to tall if

Question # 13

What makes economics scientific.

Question # 14

Barriers to entry do not include

Question # 15

Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are.

Question # 16

If marginal utility is zero.

Question # 17

A contraction in supply occurs when

Question # 18

In land intensive method which mean production is used comparativelymore

Question # 19

Developing economics usually have

Question # 20

A depreciation of currency occur when

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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 To reduce cyclical unemployment the government might.
A. Increase the budget surplus
B. Increase the balance of payments deficit
C. Reduce interest rates
D. Reduce government expenditure
2 The marginal propensity to consume is equal to.
A. Total spending /total consumption
B. total consumption/total income
C. Change in consumption/change in income
D. Change in consumption/change in savings
3 The economists who emphasized wage flexibility as a solution for unemployment were.
A. Monetarists
B. New keynesians
C. Classical economists
D. Keynesians
4 The diamond water paradox can be explained by suggesting that the price of a product is determined by.
A. Consumer incomes
B. Its marginal utility
C. Consumer surplus
D. Diminishing marginal utility
5 In monopolistic competition if firms are making abnormal profit other firms will enter and
A. The marginal cost will shift outwards
B. the demand curve will shift inwards
C. The average cost will shift downwards
D. The average variable cost will increase
6 The liquidity trap occurs when the demand for money
A. Is perfectly interest elastic
B. Is perfectly interest inelastic
C. Means that an increase in money supply leads to a fall int he interest rate
D. Means that an increase in the money supply leads to an increase in the interest rate
7 Investment depend mainly on.
A. Past levels of income
B. Future expected profits
C. Present national income levels
D. Historic data
8 To be productively efficient a firm must produce where
A. Marginal costs are maximized
B. Marginal costs are minimized
C. Average costs are minimized
D. Average revenue is maximized
9 The bowed shape of the production possibilities curve illustrtres.
A. The law of increasing marginal cost
B. the production in inefficient
C. That production is inattainable
D. The demand is relatively inelastic
10 For perfectly competitive firm
A. Price equals marginal revenue
B. Price is greater than marginal revenus
C. Price equal total revenue
D. Price equals total cost

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