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

In monopoly in long run equilibrium.

Question # 2

The economists who emphasized wage flexibility as a solution for unemployment were.

Question # 3

The free market involves

Question # 4

An increase in productivity should.

Question # 5

Demand for a normal product may shift outwards if.

Question # 6

A significant increase in the government budget deficit is likely to.

Question # 7

The Philips curve shows the relationship between inflation and what?

Question # 8

Capital, as economists use the term.

Question # 9

The effects of inflation on the price competitiveness of a country's products may be offset by

Question # 10

If the exchange rate is above the equilibrium level.

Question # 11

In a less developed country.

Question # 12

Companies in the private sector are owned by

Question # 13

In monopoly when abnormal profits are made.

Question # 14

Developing economics usually have

Question # 15

Which of the following is not one of the basic economic questions.

Question # 16

A profit maximizing firm will employ labour up to the point where.

Question # 17

Improved training of employees would.

Question # 18

In economics, the term 'scarcity' refers to the fact that

Question # 19

What lies is at the heart of the allocation of goods and services in a free market economy.

Question # 20

"Reducing inflation is a more important objective than economic growth" is an example of.

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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 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.
2 The accelerator assumes.
A. The marginal propensity to consume is constant
B. The economy is at full employment
C. There is a constant relationship between net investment and the rate of change of output
D. The multiplier is constant
3 The concept of "Interdependence of markets" can refer to the interdependence between.
A. Two or more factor markets
B. Goods and factor markets
C. Goods markets
D. All of the above
4 The law of diminishing returns assumes.
A. There are not fixed factors of production
B. There are no variable factors of production
C. Utility is maximized when marginal product falls.
D. Some factors of production are fixed
5 The law of demand states that.
A. As the quantity demanded rises, the price rises.
B. As the price rises the quantity demanded rises
C. As the price rises, the quantity demanded falls.
D. As supply rises, the demand rises.
6 A profit maximizing firm will employ labour up to the point where.
A. Marginal revenue = Marginal product
B. Margial cost = Marginal product
C. Marginal revenue product = Average cost of labour
D. Marginal revenue product = Marginal cost of labour
7 Supply is likely to be more price elastic.
A. In the short run rather than the long run
B. If factors of production are relatively immobile between industries.
C. If there are very few producers
D. If it is easy to expand output
8 A deflationary policy could include
A. Increasing injections
B. Reducing taxation rates
C. Reducing interest rates
D. Reducing government spending
9 To prevent the external value of the currency from failing the government might
A. Reduce interest rates
B. Sell its own currency
C. Buy its own currency with foreign reserves
D. Increase its own spending
10 Equilibrium in the market for good A obtains.
A. When there is no surplus or shortage prevailing in the market
B. Where the demand and supply curves for A intersect
C. When all of what is produced of A is consumed
D. All of the above

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