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

If the fprice in a market is fixed by the government below equilibrium.

Question # 2

Free trade is based on the principle of

Question # 3

To anticipate what the economy is going to do next the government will look at.

Question # 4

Economists use the term marginal utility to mean.

Question # 5

If the marginal revenue is positive

Question # 6

Which of the following rights be a scarce good.

Question # 7

Equilibrium in the market for good A obtains.

Question # 8

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

Question # 9

An increase in demand for a product should.

Question # 10

Which of the following is a characteristic of pure monopoly.

Question # 11

When referring to economic growth we normally refer to.

Question # 12

A movement along the demand curve may be caused by

Question # 13

Which of the following is necessary for a natural monopoly.

Question # 14

Menu costs in relation to inflation refer to

Question # 15

Which of the following is not an obvious or direct determinant of a country's imports.

Question # 16

Japan's low interest rates in the mid 80's were due to.

Question # 17

If marginal product is below average product.

Question # 18

The goal of a pure market economy is to best meet the desires of.

Question # 19

A scarce good.

Question # 20

An increase in price all other, things unchanged leads to.

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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 World trade has been increasing due to.
A. Increased tariffs
B. Increased legal barriers
C. Increased embargoes
D. Reduced protectionism
2 If economics when we say that people are rational, we mean that they.
A. Never make mistakes
B. Try to get what they desire as best they can, given the limitations they face.
C. Logically figure out what to do
D. Behave in a random unpredictable manner
3 Open market operations occur when the government.
A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increases the exchange rate
4 A cut in the tax rate designed to reduce the business investment is an example of.
A. Expansionary demand side policy
B. Contractionary demand side policy
C. Expansionary supply side policy
D. Contractionary supply side policy
5 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
6 In pure monopoly what is the relation between the price and teh marginal revenue.
A. The price is greater than the marginal revenue
B. The price is les than the marginal revenue
C. There is no relation
D. They are equal
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 If input price adjusted very slowly to output prices, the Phillip's curve would be.
A. Downward sloping
B. Vertical or nearly vertical
C. Upward sloping
D. Horizontal or nearly horizontal
9 The agricultural price support program is an example of.
A. A price celling
B. A price floor
C. Equilibrium pricing
D. None of these
10 The marginal revenue curve in monopoly
A. Equals the demand curve
B. Is a parallel with the demand curve
C. Lies below and converges with the demand curve
D. Lies below and diverges from the demeaned curve

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