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

00:00
Question # 1

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

Question # 2

Which of the following would decrease aggregate demand.

Question # 3

Supply side policies are most appropriate to cure.

Question # 4

Why is the law of diminishing marginal returns true.

Question # 5

An increase in the wage rate.

Question # 6

The accelerator theory of investment says that induced investments determined by.

Question # 7

To maximize sales revenue a firm should produce where

Question # 8

Labour productivity measures.

Question # 9

Menu costs in relation to inflation refer to

Question # 10

An injection of funds into a less developed country might set off the

Question # 11

To reduce the supply of money the government could.

Question # 12

In a recession a government.

Question # 13

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

Question # 14

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

Question # 15

The law of demand states that.

Question # 16

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

Question # 17

A demand switching policy could be.

Question # 18

The index used most often to measure inflation is the

Question # 19

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

Question # 20

Normal profit occurs when

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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 Economic theory assumes that people
A. Act in greedy and selfish ways, without regard for the welfare of others.
B. Act without regard for their own interests.
C. Are not motivated by self interest
D. Are motivated by self interest but still might be concerned for the welfare of others.
2 Japan's low interest rates in the mid 80's were due to.
A. High rates of domestic savings.
B. A decrease in Japan's exports
C. Increases in the U.S. deficit
D. High rates of domestic spending in Japan
3 Occupational immobility of labour occurs if.
A. People lack information
B. People do not want to work
C. People do not have the right skills to work
D. People cannot afford to move location
4 The natural rate of unemployment is likely to tall if
A. Unemployment benefits increase
B. Income tax increases
C. More training is available for the unemployed
D. Geographical immobility increases
5 Which of the following is not one of the basic economic questions.
A. What is produce
B. Who to produce for
C. How to produce
D. How to maximize economic growth
6 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.
7 Game theory
A. Firm are assumed to act independently
B. Firms are assumed to cooperate with each other
C. Firm collude as part of a cartel
D. Firms consider the actions of others before deciding what to do.
8 The accelerator assumes.
A. The marginal propensity to consume is constant
B. The economy is at full employment
C. There is a constant relationship between net investment and the rate of change of output
D. The multiplier is constant
9 A cut in the income tax rate designed to encourage household consumption is an example of.
A. Expansionary demand side policy
B. Contractionary demand side policy
C. Expansionary supply side policy
D. Contractionary supply side policy
10 The price mechanism does not act as a
A. Signal
B. Incentive
C. Rationing device
D. Indicator of income

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