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 free market involves

Question # 2

If injections are greater than withdrawals.

Question # 3

The difference between gross investment and net investment is.

Question # 4

In order to maximize profits a monopoly company will produce that quantity at which the.

Question # 5

The concept of "Interdependence of markets" can refer to the interdependence between.

Question # 6

According to Keynes, the level of employment is determined by

Question # 7

If the price was fixed below the equilibrium price there would be.

Question # 8

Open market operations occur when the government.

Question # 9

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

Question # 10

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 # 11

A reduction in the money supply is likely to

Question # 12

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.

Question # 13

An increase in the costs of production will

Question # 14

An increase in aggregate demand is more likely to lead to demand pull inflation if.

Question # 15

If input price adjusted very slowly to output prices, the Phillip's curve would be.

Question # 16

A movement along the demand curve may be caused by

Question # 17

A study of how increase in the minimum wage rate will effect the national unemployment rate is an example of.

Question # 18

Human wants are

Question # 19

Globalization is made more difficult by

Question # 20

When supply increases in an agricultural market famer's earnings might fall because.

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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 To be allocatively efficient ta firm must produce where
A. the total cost equals demand
B. the average revenue equals the marginal revenue
C. The price equals the average cost
D. The price equals the marginal cost
2 Over time the price of primary products tends to fall because.
A. Demand is income elastic
B. Supply is income elastic
C. Of outward shifts in supply
D. Demand is price elastic
3 In a free market the combination of products produced will be determined by.
A. Market forces of supply and demand
B. The government
C. The law
D. The public sector
4 Open market operations occur when the government.
A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increases the exchange rate
5 A reflationary policy
A. Increases aggregate supply
B. Increases aggregate demand
C. Decreases the price level
D. Increase full employment
6 Ordinal measurement approach was not presented by
A. Allen
B. Hicks
C. Edge worth
D. Robbins
7 Compared to the case of perfect competition, a monopolist is more likely to
A. Charge a higher price
B. Produce a lower quantity of the product
C. Make a greater amount of economic profit
D. All of the above
8 If demand is price inelastic.
A. An increase in price must raise profits
B. An increase in price decreases revenue
C. An increase in price increase revenue
D. A decrease in price reduces sales.
9 Which of the following is true.
A. If the marginal cost is greater than the average cost the average cost fallls.
B. If the marginal cost is greater than the average cost the average cost increases.
C. If the marginal cost is positive total costs are maximized
D. If the marginal cost is negatives total costs increase at a decreasing rate if output increases
10 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

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