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

Laboratory experiments cannot be performed in economics because.

Question # 2

If economics when we say that people are rational, we mean that they.

Question # 3

All currencies other than the domestic currency of a given country are referred to as.

Question # 4

Market is called father of economics

Question # 5

Which of the following is not likely to be a government objective.

Question # 6

According to Keynes, the level of employment is determined by

Question # 7

An increase in the marginal propensity to consume will

Question # 8

Government policies that focus on increasing production rather than demand are called.

Question # 9

Which is the most volatile component of aggregate demand.

Question # 10

Which of the following is an injection into the economy.

Question # 11

Normal profit occurs when

Question # 12

A cut in the tax rate designed to reduce the business investment is an example of.

Question # 13

GDP plus net property income from aboard equals what.

Question # 14

World trade has been increasing due to.

Question # 15

The liquidity trap occurs when the demand for money

Question # 16

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

Question # 17

Which of the following is a policy instrument .as opposed to a government objective.

Question # 18

In cartels.

Question # 19

If firms join together to set prices and quantities this is known as what.

Question # 20

In perfect competition.

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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 Supply side policies are most appropriate to cure.
A. Involuntary unemployment
B. Cyclical unemployment
C. Voluntary unemployment
D. A fall in aggregate demand
2 The fundamental economic problem faced by all societies is.
A. Unemployment
B. Inequality
C. Poverty
D. Scarcity
3 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
4 Government policies that focus on increasing production rather than demand are called.
A. Fiscal policies
B. Monetary policies
C. Incomes policies
D. Supply side policies
5 As the MPS increases, the multiplier will
A. Increase
B. Either increase or decrease depending on the size of the change in investment
C. Remain constant
D. Decrease
6 Why does it make sense in assume that people are rational, if you want to predict their behavior.
A. People are not guided by emotions when making decisions
B. People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make
C. People never make mistakes, and tend to make the correct choices all of the time
D. People always logically figure out what to do.
7 When supply increases in an agricultural market famer's earnings might fall because.
A. Supply is price elastic
B. Demand is price inelastic
C. the government buys up all the excess production
D. All output must be sold at a maximum price
8 Profit is measured by
A. Revenue - Fixed costs
B. Fixed cost + revenue
C. Revenue - sales
D. Revenues - total costs
9 An increase in the wage rate.
A. Will usually lead to more people employed
B. Will decrease total earnings if the demand for labour is wage elastic
C. Is illegal in a free market
D. Will cause a shift in the demand for labour
10 If an economy is productively efficient.
A. Everyone is wealthy
B. Resources are unemployed
C. More of one product can only be produced if less of another product is produced.
D. The distribution of income is equal

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