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

Investment is an out stable element of aggregate demand because is depends heavily on.

Question # 2

A shift in supply will have a bigger effect on price than output if demand is.

Question # 3

Gross National product equals

Question # 4

Economists use the term utility to mean

Question # 5

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

Question # 6

Market is called father of economics

Question # 7

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

Question # 8

Scarcity means that

Question # 9

Supply is likely to be more price elastic.

Question # 10

A supply curve that starts at the origin has

Question # 11

The law of diminishing returns assumes.

Question # 12

Revealed preference theory was presented by.

Question # 13

In monopoly in long run equilibrium.

Question # 14

Less demand in the economy may increase unemployment this may lead to less spending which may reduce demand further This is called.

Question # 15

Acquisition and merger are examples of.

Question # 16

A demand switching policy could be.

Question # 17

Which of the following best describes the selling of a production license to another firm.

Question # 18

"Income inequality can be high in the free market and should be reduce ".This is an example of what.?

Question # 19

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

Question # 20

The accelerator theory of investment says that induced investments determined by.

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Economics
1st Chapter

PPSC Economics Chapter 1 Test

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Sr.# Question Answer
1 Revealed preference theory was presented by.
A. Samuelson
B. Hicks
C. Marshall
D. rICARDO
2 When marginal revenue equals marginal cost
A. Total revenue equal total cost
B. There is the biggest positive difference between total revenue and total cost
C. there is the biggest negative difference between total revenue and total cost.
D. Profits are zero
3 If the price in a market is fixed by the government above equilibrium.
A. There is excess equilibrium
B. There is excess supply
C. There is excess demand
D. There is equilibrium
4 Occupational immobility of labour occurs if.
A. People lack information
B. People do not want to work
C. People do not have the right skills to work
D. People cannot afford to move location
5 In economics we ofthe say that a particular event will occur "as long as other things stay the same. " The conduction that other thing saty the same is also called.
A. Ceteris paribus
B. Marginal decision making
C. Incentives
D. Secondary effects
6 As income increases.
A. the average propensity to consume gets nearer in value to the marginal propensity to consume
B. the average propensity to consume diverges in value from the marginal propensity to consume
C. the average propensity to consume falls
D. The averge propensity to consume always approaches 0
7 Economics given can be shown by
A. An inward shift of the production possibility frontier
B. A movement down the production possibility frontier
C. An outward shift of the production possibility frontier
D. A movement up the production possibility frontier
8 The socially optimal rate of growth is
A. Zero
B. Negative
C. Where the marginal social benefit the marginal social cost
D. total social costs are minimized
9 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
10 The price mechanism does not act as a
A. Signal
B. Incentive
C. Rationing device
D. Indicator of income
11 If injection are less than with drawls at the full employment level of national income there is.
A. an inflationary gap
B. Equilibrium
C. A deflationary gap
D. Hyperinflation
12 If the marginal revenue is positive
A. Selling another unit will increase total revenue
B. Selling another unit will increase profits
C. Selling another unit will increase cost
D. Selling another unit will increase average revenue
13 Exchange rates that are determined by the unregulated forces of supply and demand are.
A. Floating exchange rates
B. Pegged exchange rates
C. Fixed exchange rate
D. Managed exchange rates
14 Less Developed countries lend to have
A. A high average age
B. A slow population growth rate
C. High life expectancy
D. A low literacy rate
15 An outward shift in the marginal efficacy of capital should.
A. Decrease consumption
B. Increase aggregate demand
C. Reduce aggregate supply
D. Slow economic growth
16 The price mechanism cannot.
A. Act as a signal
B. Act as an incentive
C. Act as a rationing device
D. Shift the demand curve
17 A depreciation of currency occur when
A. The value of the currency falls
B. The value of the currency increases
C. Inflation falls
D. The balance of payments improves
18 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.
19 Why is the law of diminishing marginal returns true.
A. specialization and division of labor
B. Spreading the average fixed cost
C. Limited capital
D. All factors being variable in the long run
20 Which of the following would increase aggregate demand.
A. Increasing saving
B. Increasing import spending
C. Increasing taxation revenue
D. increased investment

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