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

An increase in demand for a product should.

Question # 2

An increase in the marginal propensity to consume will

Question # 3

An increase in productivity should.

Question # 4

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

Question # 5

A depreciation of currency occur when

Question # 6

In a free market the combination of products produced will be determined by.

Question # 7

A profit maximizing firm will employ labour up to the point where.

Question # 8

Which does the government not control directly.

Question # 9

To be allocatively efficient ta firm must produce where

Question # 10

"Reducing inflation is a more important objective than economic growth" is an example of.

Question # 11

The demand for a product would be more inelastic.

Question # 12

The law of diminishing returns assumes.

Question # 13

In monopolistic competition firms profit maximize where

Question # 14

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

Question # 15

Why is the law of diminishing marginal returns true.

Question # 16

In the long term a firm will produce provident the revenue covers.

Question # 17

The law of diminishing returns states that as more of a variable factor is added to a certain amount of a fixed factor beyond some point.

Question # 18

Globalization is made more difficult by

Question # 19

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

Question # 20

Aggregate demand will increase if

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 Rapid increases in the price level during periods of recession or high unemployment are known as.
A. Slump
B. Stagnation
C. Stagflation
D. Inflation
2 The marginal propensity to consume is equal to.
A. Total spending /total consumption
B. total consumption/total income
C. Change in consumption/change in income
D. Change in consumption/change in savings
3 Which of the following is an injection into the economy.
A. Investment
B. Saving
C. Taxation
D. Import spending
4 The average variable cost curve.
A. Is derived from the average fixed costs
B. Converges with the average cost as output increases
C. Equals revenue minum profits
D. Equal the total costs divided by the output
5 Companies in the private sector are owned by
A. The government
B. Shareholders
C. Employees
D. The community
6 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
7 If injections are greater than withdrawals.
A. National income will increase
B. National income will decrease
C. National income will stay in equilibrium
D. Price will fall
8 Lower interest rates are likely to.
A. Decrease consumption
B. Increase cost of borrowing
C. Encourage saving
D. Increase spending
9 When an economy first begins to frow more slowly.
A. GDP increase
B. Inflation is likely to increase
C. Stock levels are likely to increse
D. Investment in equipment is likely to increase
10 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.

Test Questions