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

A subsidy paid to producers.

Question # 2

If the fprice in a market is fixed by the government below equilibrium.

Question # 3

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

Question # 4

An outward shift in the marginal efficacy of capital should.

Question # 5

In a market system sellers act in ___ interest, but this leads to behaviors in ___ interest.

Question # 6

A supply curve that starts at the origin has

Question # 7

Laboratory experiments cannot be performed in economics because.

Question # 8

The best describes consumer surplus.

Question # 9

The resources in the economy do not include.

Question # 10

If there is cyclical unemployment in the economy the government might.

Question # 11

Open market operations occur when the government.

Question # 12

Revealed preference theory was presented by.

Question # 13

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

Question # 14

Which of the following is necessary for a natural monopoly.

Question # 15

Gross National product equals

Question # 16

Human wants are

Question # 17

When an economy first begins to frow more slowly.

Question # 18

If there is a price celling there will be

Question # 19

Rapid increases in the price level during periods of recession or high unemployment are known as.

Question # 20

A reflationary policy

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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 the price is less than the average cost but higher than the average variable costs.
A. The firm is making a loss and will should own in the short term.
B. The firm is making a profit.
C. The firm is making a loss but will continue to produce in the short term
D. The firm is making a loss and is making a negative contribution to fixed costs
2 In perfect competition.
A. the products firm offer are very similar
B. Products are heavily differentiated
C. A few firms dominate the market
D. Consumers have limited information
3 If the "Regulated -market" price is below the equilibrium price.
A. The quantity demanded will be greater than quantity supplied
B. Demand will be les than supply
C. Quantity demanded will be less than quantity supplied
D. Quantity demanded will equal quantity supplied
4 The fundamental economic problem faced by all societies is.
A. Unemployment
B. Inequality
C. Poverty
D. Scarcity
5 What does the phrases "there is no such thing as a free lunch'mean"
A. Individuals must always pay money for the food the eat.
B. No restaurant wner will provide food to patrons unless they pay her
C. Restaurant owners act selfishly
D. Consumption of any good requires that other goods be given up
6 A supply curve that starts at the origin has
A. A price elasticity of supply greater than one
B. A price elasticity of supply equal to one
C. A price elasticity of supply less than one
D. A positive price elasticity of supply
7 Laboratory experiments cannot be performed in economics because.
A. Of resource scarcity
B. Economics is a natural science
C. Of the difficulty of distinguishing between normative and positive statements.
D. Economics is a social science
8 To be allocatively efficient ta firm must produce where
A. the total cost equals demand
B. the average revenue equals the marginal revenue
C. The price equals the average cost
D. The price equals the marginal cost
9 If one car company takes over another car company this is an example of which type of integration.
A. Vertical
B. Horizontal
C. Conglomerate
D. Literal
10 The agricultural price support program is an example of.
A. A price celling
B. A price floor
C. Equilibrium pricing
D. None of these

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