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

00:00
Question # 1

Over time the price of primary products tends to fall because.

Question # 2

In land intensive method which mean production is used comparativelymore

Question # 3

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

Question # 4

An increase in the wage rate.

Question # 5

The price mechanism does not act as a

Question # 6

In monopolistic competition

Question # 7

An increase in demand for a product should.

Question # 8

Normal profit occurs when

Question # 9

A depreciation of currency occur when

Question # 10

In perfect price discrimination

Question # 11

Aggregate demand will increase if

Question # 12

The concept of "Interdependence of markets" can refer to the interdependence between.

Question # 13

Improved training of employees would.

Question # 14

If injections are greater than withdrawals.

Question # 15

If the price elasticity is -0.3 this means.

Question # 16

Economic growth can be measured by

Question # 17

As the MPS increases, the multiplier will

Question # 18

In monopoly which of the following is true.

Question # 19

A reduction in the costs of production will

Question # 20

Firms in perfect competition face a

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Economics
1st Chapter

PPSC Economics Chapter 1 Test

Here you can prepare PPSC Economics Chapter 1 (Basic Economics) Test. Click the button for 100% free full practice test.

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PPSC Economics Chapter 1 Important MCQ's

Sr.# Question Answer
1 What lies is at the heart of the allocation of goods and services in a free market economy.
A. Concerns of equity or equal distribution among individuals.
B. The order or command of the ruling government or dictator
C. The wishes of consumers in the market
D. The price mechanism
2 Any combination of products inside the production possibility frontier is
A. Allocatively inefficient
B. X inefficient
C. Consumer inefficient
D. Productively inefficient
3 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
4 Which of the following is not a global organization?
A. IMF
B. World bank
C. Competition commission
D. WTO
5 If there is a price celling which of the following is NOT likely to occur.
A. Rationing by first come first served
B. Black markets
C. Gray markets
D. Sellers providing goods for free that were formerly not free
6 A deflationary policy could include
A. Increasing injections
B. Reducing taxation rates
C. Reducing interest rates
D. Reducing government spending
7 An independent assessment of the impact of firm's activities on society is called a.
A. Financial audit
B. Balance sheet
C. Profit and uses account
D. Social audit
8 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
9 Which of the following best describes the selling of a production license to another firm.
A. Hands over all rights to its products
B. Sells its products abroad
C. Sells the right to produce to another business
D. Sells the business to another business
10 With a positive externality
A. There is under consumption in the free market
B. There is over consumption in the free market
C. The government may tax to decrease production
D. Society could be made off if less was produced

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