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

  • Total Questions20

  • Time Allowed20

Start Test Download PDF

PPSC Economics Topic 1 Basic Economics

00:00
Question # 1

The law of diminishing returns assumes.

Question # 2

According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if

Question # 3

Market is called father of economics

Question # 4

A reduction in the money supply is likely to

Question # 5

When marginal revenue equals marginal cost

Question # 6

If the price is less than the average cost but higher than the average variable costs.

Question # 7

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

Question # 8

Which of the following is not a global organization?

Question # 9

If the price elasticity is -0.3 this means.

Question # 10

An increase in interest rates.

Question # 11

An increase in consumption at any given level of income is likely to lead to.

Question # 12

Which of the following is a normative statement in economics.

Question # 13

There are three fundamental questions every society must answer Which of the following is one of these questions.

Question # 14

In monopolistic competition if firms are making abnormal profit other firms will enter and

Question # 15

Supply side policies are most appropriate to cure.

Question # 16

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

Question # 17

According to classical models the level of employment is determined primarily by

Question # 18

In monopolistic competition firms profit maximize where

Question # 19

The fundamental economic problem faced by all societies is.

Question # 20

A government might use tax to.

Submit

Prepare Complete Set Wise PPSC Economics Topic 1 Basic Economics MCQs Online With Answers


Topic Test

00:00
Submit
 
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.

Start Chapter 1 Test

Top Scorers Of PPSC Economics Topic 1 Basic Economics MCQ`s Test

  • H
    HaRaL Official 25 - May - 2024 00 Min 10 Sec 20/20
  • S
    Shad Ali Shah 26 - Jul - 2024 10 Min 11 Sec 17/20
  • S
    sarmad fida 06 - Jun - 2024 06 Min 45 Sec 16/20
  • H
    Hassam Shahid 30 - Jun - 2024 07 Min 25 Sec 16/20
  • M
    M.Shakeel Arshid Waince 03 - May - 2024 06 Min 11 Sec 15/20
  • G
    graphic angel 27 - Jul - 2024 04 Min 13 Sec 14/20
  • S
    Sadia 13 - Jun - 2024 06 Min 49 Sec 14/20
  • A
    Abdul Qayyum 25 - May - 2024 07 Min 00 Sec 14/20
  • M
    Muhammad Sajjad 17 - Nov - 2024 12 Min 30 Sec 14/20
  • A
    Asifa Baloch 12 - Jul - 2024 00 Min 13 Sec 13/20
  • M
    Madiha Naz 23 - Apr - 2024 05 Min 41 Sec 13/20
  • I
    Imran Haider 06 - Jun - 2024 11 Min 32 Sec 13/20
  • R
    Rai Hasis 02 - Jun - 2024 04 Min 56 Sec 12/20
  • A
    Abdul latif 14 - May - 2024 07 Min 28 Sec 12/20
  • A
    Abida Awan 31 - Jul - 2024 08 Min 50 Sec 12/20

PPSC Economics Chapter 1 Important MCQ's

Sr.# Question Answer
1 Game theory
A. Firm are assumed to act independently
B. Firms are assumed to cooperate with each other
C. Firm collude as part of a cartel
D. Firms consider the actions of others before deciding what to do.
2 Resources in an economy
A. Are always fixed
B. Can never decrease
C. Always increase over time
D. Are limited at any moment in time
3 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.
4 Demand pull inflation may be caused by
A. An increase in costs
B. A reduction in interest rate
C. A reduction in government spending
D. An outward shift in aggregate supply
5 What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity.
A. Price falls, quantity rises
B. Price rises, quantity falls
C. Both price and quantity fall
D. Both price and quantity rise
6 Capital, as economists use the term.
A. Is the money the firm spends to hire resources
B. Is money the firm raises from selling stock
C. Refers to the process by which resources are transformed into useful forms
D. Refers to things that have already been produced that are in turn used to produce other goods and services.
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 Who advocates laissez fair.
A. Monetarists
B. Classical
C. Neo classical
D. Modern
9 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
10 Tariffs.
A. Decrease the domestic price of a product.
B. Increase government earnings from tax
C. Increase the quantity of imports
D. Decrease domestic production

Test Questions