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

Menu costs in relation to inflation refer to

Question # 2

Which of the following is true.

Question # 3

Friend man's theory of consumption focuses on

Question # 4

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

Question # 5

The length of a business cycle would be measured from

Question # 6

Which is the most volatile component of aggregate demand.

Question # 7

Open market operations occur when the government.

Question # 8

Which of the following is a characteristic of pure monopoly.

Question # 9

Demand for primary products is likely to be

Question # 10

To adjust GDP from market prices to factor cost.

Question # 11

A significant increase in the government budget deficit is likely to.

Question # 12

If the price in a market is fixed by the government above equilibrium.

Question # 13

In a recession a government.

Question # 14

Which of the following best describes the selling of a production license to another firm.

Question # 15

The index used most often to measure inflation is the

Question # 16

A benefit to consumers of price discrimination is that

Question # 17

What makes economics scientific.

Question # 18

According to Keynes, the level of employment is determined by

Question # 19

The accelerator assumes.

Question # 20

Economics is the study of.

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 Lower interest rates are likely to.
A. Decrease consumption
B. Increase cost of borrowing
C. Encourage saving
D. Increase spending
2 In perfect competation.
A. The price equals the marginal revenue
B. The price equals the average variable cost
C. The fixed cost equals the variable costs
D. The price equals the total costs
3 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
4 If the marginal revenue is positive
A. Selling another unit will increase total revenue
B. Selling another unit will increase profits
C. Selling another unit will increase cost
D. Selling another unit will increase average revenue
5 According to schumpater
A. Monopolies are inefficient
B. Monopoly profits act as an incentive for innovation
C. Monopolies are allocatively efficient
D. Monopolies are productively efficient
6 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
7 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
8 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.
9 If the price is less than the average cost but higher than the average variable costs.
A. The firm is making a loss and will should own in the short term.
B. The firm is making a profit.
C. The firm is making a loss but will continue to produce in the short term
D. The firm is making a loss and is making a negative contribution to fixed costs
10 Which of the following is the government most likely to subsidies.
A. Negative externalities
B. Positive externalities
C. Monopolies
D. O ligopojies

Test Questions

Is this page helpful?