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

The effects of inflation on the price competitiveness of a country's products may be offset by

Question # 2

If there is a price celling there will be

Question # 3

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

Question # 4

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

Question # 5

In economics we ofthe say that a particular event will occur "as long as other things stay the same. " The conduction that other thing saty the same is also called.

Question # 6

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

Question # 7

An increase in the marginal propensity to consume will

Question # 8

Economic theory assumes that people

Question # 9

The agricultural price support program is an example of.

Question # 10

An increase in the wage rate.

Question # 11

If employees cannot accept a job because of the costs of moving this is known as.

Question # 12

Which of the following can the government not use directly to control the economy.

Question # 13

If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge.

Question # 14

The sacrifice involved when you choose a particular course of action is called the

Question # 15

If a few firms dominate an industry the market is known as.

Question # 16

Which of the following is not likely to be a government objective.

Question # 17

Total revenue equals

Question # 18

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

Question # 19

Finding a partner to work with abroad is called a.

Question # 20

The best describes consumer surplus.

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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 According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if
A. The velocity of circulation decreases
B. The number of transactions decreases
C. There is deflation
D. The velocity of circulation and the number of transactions is constant
2 Firm in oligopoly are likely to.
A. Invest heavily in branding
B. Act independently of other firms
C. Try to differentiate its products
D. Try to be a price maker
3 In a recession
A. Unemployment is likely to be low
B. prices are likely to increase
C. Growth is negative
D. Growth is slow
4 Menu costs in relation to inflation refer to
A. Costs of finding better rates of return
B. Costs of altering price lists
C. Costs of money increasing its value
D. Costs of revaluing the currency
5 In perfect price discrimination
A. Consumer surplus is maximized
B. Produce surplus is zero
C. Community surplus is maximized
D. Consumer surplus is zero
6 If labour productivity per week is 200 units and there are 5 employees what is the total output.
A. 40 units
B. 195 units
C. 1000 units
D. 200 units
7 The accelerator theory of investment says that induced investments determined by.
A. The rate of change of national income
B. Expectations
C. The level of national income
D. The level of aggregate demand
8 An increase in productivity should.
A. Lead to a contraction of supply
B. Lead to an expansion of supply
C. Lead to a shift in supply outwards
D. Lead to higher equilibrium and lower equilibrium quantity.
9 The marginal rate of tax paid is.
A. The total tax paid /total income
B. Total income/total tax paid
C. Change in the tax paid/change in income
D. Change in income/change in tax paid
10 To reduce cyclical unemployment the government might.
A. Increase the budget surplus
B. Increase the balance of payments deficit
C. Reduce interest rates
D. Reduce government expenditure

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