PPSC Economics Chapter 1 Basic Economics With Answers

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PPSC Economics Chapter 1 Basic Economics

Sr. # Questions Answers Choice
1 Resources in an economy Are always fixed Can never decrease Always increase over time Are limited at any moment in time
2 Ordinal measurement approach was not presented by Allen Hicks Edge worth Robbins
3 Who advocates laissez fair. Monetarists Classical Neo classical Modern
4 Market is called father of economics Marshall Robbins Keynes Friedman
5 Profit making is basic motive in. Socialism Mixed economy Communism <sup>Capitalism</sup>
6 In land intensive method which mean production is used comparativelymore Labour Land Capital Organization
7 What does ceteris paribus mean. "Scientific method" "Rational thinking" "Other things remaining the same" "There is no such thing as a free lunc"
8 What makes economics scientific. It tests theories against observations and modifies the theories if needed. It uses numbers to measure things It involves the use of experiments It is a description of how thing work
9 If economics when we say that people are rational, we mean that they. Never make mistakes Try to get what they desire as best they can, given the limitations they face. Logically figure out what to do Behave in a random unpredictable manner
10 A scarce good. Does not exist Is a good that can only be purchased with money Is a good that can never be purchased with money Is a good that is available in limited quantities, but is desired in greater quantities.
11 Which of the following rights be a scarce good. Love faith Self control All of above
12 Which kind economics deals with issues such as unemployment inflation, and economic growth. Macro economics Micro economics Growth economics Political economics
13 Macro economics deals with Only the decisions made by individuals and their results. Only the decisions made by businesses and their results. Mostly large scale decisions made by countries and governments, and their results. Only the decisions made by individuals but not the results.
14 Why does it make sense in assume that people are rational, if you want to predict their behavior. People are not guided by emotions when making decisions 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 People never make mistakes, and tend to make the correct choices all of the time People always logically figure out what to do.
15 Economic theory assumes that people Act in greedy and selfish ways, without regard for the welfare of others. Act without regard for their own interests. Are not motivated by self interest Are motivated by self interest but still might be concerned for the welfare of others.
16 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. Ceteris paribus Marginal decision making Incentives Secondary effects
17 Can economic theories be tested. No since individuals will seldom respond in predictable ways Yes, since all individuals respond int he same ways to the same situation. No , since the general behavior of a large numebr of individuals cannot be predicated Yes , since people will, on average, respond in predictable ways to changes in costs and benefits.
18 What does the phrases "there is no such thing as a free lunch'mean" Individuals must always pay money for the food the eat. No restaurant wner will provide food to patrons unless they pay her Restaurant owners act selfishly Consumption of any good requires that other goods be given up
19 A recurring theme in economics is. People have unlimited wants in the face of limited resources There are unlimited resources Our country is rich, we just don't realize it People have limited wants in the face of limited resource.
20 Scarcity means that We cannot have everything that we might want We have to make choices between the things we desire. There are costs to just about any activity we undertake We must give up some thing in order to obtain other things. All of the above are correct
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