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

An increase in demand for a product should.

Question # 2

Unfair competition does not include

Question # 3

A public good will

Question # 4

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

Question # 5

Horizontal integration may lead to internal economics of scale. Which of the following is not a type of internal economy of scale.

Question # 6

If the marginal revenue is positive

Question # 7

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

Question # 8

Menu costs in relation to inflation refer to

Question # 9

A recurring theme in economics is.

Question # 10

An increase in aggregate demand if aggregate supply is totally inelastic will.

Question # 11

Profit is measured by

Question # 12

An expansionist fiscal policy could include

Question # 13

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

Question # 14

Acquisition and merger are examples of.

Question # 15

If one car company takes over another car company this is an example of which type of integration.

Question # 16

To reduce cyclical unemployment the government might.

Question # 17

A reflationary policy

Question # 18

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

Question # 19

An increase in national income is.

Question # 20

If marginal cost is positive and falling.

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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 In economics, the term 'scarcity' refers to the fact that
A. Everything worthwhile costs money
B. No society is able to produce enough to fully satisfy the desires of people for goods.
C. Even in wealthy societies, like the united states, some people are poor
D. sometimes shortages of product result if its price is set too low.
2 The first level of output at which the long run average costs are minimized is called.
A. The minimum Efficient Scale
B. The minimum External scale
C. The Maximum External scale
D. The maximum Effective scale.
3 Which of the following is a normative statement in economics.
A. More spending by the government reduces poverty
B. Higher taxes lead to less desire to work
C. the UK Economy is growing fast relative to other European Union members
D. The Government should concentrate on reducing unemployment
4 In a command economy
A. The price mechanism acts as an incentive
B. Resources are allocated by market forces
C. Individual firms make decisions for themselves about what to produce and how to produce it.
D. The public sector is large
5 Which of the following is not a global organization?
A. IMF
B. World bank
C. Competition commission
D. WTO
6 The price mechanism does not act as a
A. Signal
B. Incentive
C. Rationing device
D. Indicator of income
7 The economists who emphasized wage flexibility as a solution for unemployment were.
A. Monetarists
B. New keynesians
C. Classical economists
D. Keynesians
8 Developing economics usually have
A. Low GDP per captia
B. Low CPI
C. Large balance of payments surpluses
D. Large budget surpluses
9 In the long run in perfect competition
A. Price = average= cost = marginal cost
B. Price = average cost = total cost
C. The price covers fixed cost
D. total revenue = total variable cost
10 If the marginal revenue is less than the marginal cost then to profit maximize a firm should.
A. Reduce output
B. Increase output
C. Leave output where it is.
D. Increase costs

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