PPSC Economics Topic 1 Basic Economics

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

Interaction A
Conglomerate B
Collusion C
Integration D

Question # 2

Acquisition and merger are examples of.

Internal growth A
External growth B
Organic growth C
Underlying growth D

Question # 3

An increase in the wage rate.

Will usually lead to more people employed A
Will decrease total earnings if the demand for labour is wage elastic B
Is illegal in a free market C
Will cause a shift in the demand for labour D

Question # 4

Less Developed countries lend to have

A high average age A
A slow population growth rate B
High life expectancy C
A low literacy rate D

Question # 5

The length of a business cycle would be measured from

Peak t trough A
Trough to peak B
Peak to Peak C
The slump to the expansion D

Question # 6

Which of the following is the government most likely to subsidies.

Negative externalities A
Positive externalities B
Monopolies C
O ligopojies D

Question # 7

Increased levels of spending on imports

shift aggregate supply to the right A
Shift aggregate supply to the left B
Shift aggregate demand to the right C
Shift aggregate demand to the left D

Question # 8

When an economy first begins to frow more slowly.

GDP increase A
Inflation is likely to increase B
Stock levels are likely to increse C
Investment in equipment is likely to increase D

Question # 9

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

Consumers A
Companies B
Workers C
The government D

Question # 10

Occupational immobility of labour occurs if.

People lack information A
People do not want to work B
People do not have the right skills to work C
People cannot afford to move location D

Question # 11

Resources in an economy

Are always fixed A
Can never decrease B
Always increase over time C
Are limited at any moment in time D

Question # 12

Revealed preference theory was presented by.

Samuelson A
Hicks B
Marshall C
rICARDO D

Question # 13

Which of the following is not an argument for protectionism.

To protect infant industries A
To increase the level of imports B
To protect strategic industries C
To improve the balance of payments D

Question # 14

Can economic theories be tested.

No since individuals will seldom respond in predictable ways A
Yes, since all individuals respond int he same ways to the same situation. B
No , since the general behavior of a large numebr of individuals cannot be predicated C
Yes , since people will, on average, respond in predictable ways to changes in costs and benefits. D

Question # 15

The average variable cost curve.

Is derived from the average fixed costs A
Converges with the average cost as output increases B
Equals revenue minum profits C
Equal the total costs divided by the output D

Question # 16

As the MPS increases, the multiplier will

Increase A
Either increase or decrease depending on the size of the change in investment B
Remain constant C
Decrease D

Question # 17

Say's law states that

Supply creates its own demand A
Demand creates its own supply B
There is no such things as a free lunch C
Macro economics policy activism is essential to ensure full employment. D

Question # 18

An increase in aggregate demand will have most effect on prices if.

Aggregate supply is price inelastic A
Aggregate supply is price elastic B
Aggregate supply has a unitary price elasticity C
Aggregate demand is price inelastic D

Question # 19

To prevent the external value of the currency from failing the government might

Reduce interest rates A
Sell its own currency B
Buy its own currency with foreign reserves C
Increase its own spending D

Question # 20

In perfect competition.

the products firm offer are very similar A
Products are heavily differentiated B
A few firms dominate the market C
Consumers have limited information D

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PPSC Economics Topic 1 MCQS Test Preparation

MCQ's Test For PPSC Economics Topic 1 Basic Economics

PPSC Economics Topic 1 Basic Economics

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

Acquisition and merger are examples of.

An increase in the wage rate.

Less Developed countries lend to have

The length of a business cycle would be measured from

Which of the following is the government most likely to subsidies.

Increased levels of spending on imports

When an economy first begins to frow more slowly.

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

Occupational immobility of labour occurs if.

Resources in an economy

Revealed preference theory was presented by.

Which of the following is not an argument for protectionism.

Can economic theories be tested.

The average variable cost curve.

As the MPS increases, the multiplier will

Say's law states that

An increase in aggregate demand will have most effect on prices if.

To prevent the external value of the currency from failing the government might

In perfect competition.

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

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