PPSC most important mcqs of Economics
MCQS
Practice PPSC most important mcqs of Economics, solved questions, and exam-style quizzes. Perfect for competitive exams and student preparation.
Economics Mcqs
1. A buyer’s perception of value is considered a trade-off between:
(A) Product value and psychic cost
(B) Total customer value and total customer cost
(C) Image value and energy cost
(D) Service value and monetary cost
Correct Answer: B
2. Capital Structure is an optimal mix of which one of the following options:
(A) Sales and profits
(B) Debt and equity
(C) Current assets and fixed assets
(D) None of these
Correct Answer: B
3. At breakeven point:
(A) Total expenses = Total revenue
(B) Total expenses > Total revenue
(C) Total expenses < Total revenue
(D) None of these
Correct Answer: A
4. Floating assets are valued at:
(A) Market price
(B) Cost
(C) Cost or market whichever is lower
(D) Cost less depreciation
Correct Answer: C
5. __________ refers to the risk inherent to the entire market or market segment.
(A) Financial risk
(B) Purchasing power
(C) Systematic risk
(D) Interest free risk
Correct Answer: C
6. The first and foremost function of management is:
(A) Planning
(B) Organizing
(C) Controlling
(D) Coordination
Correct Answer: A
7. Which of the following is a method that is commonly used in qualitative research?
(A) Self-completion questionnaires
(B) Surveys
(C) Ethnography
(D) Structured observation
Correct Answer: C
8. The form of business having unlimited liabilities is:
(A) General partnership
(B) Limited partnership
(C) Limited liability partnership
(D) Particular partnership
Correct Answer: A
9. The average of the data is also known as:
(A) Harmonic mean
(B) Arithmetic mean
(C) Geometric mean
(D) Sample mean
Correct Answer: B
10. If the current ratio is 2:1 and working capital is Rs. 60,000, what is the value of current assets?
(A) Rs. 60000
(B) Rs. 100000
(C) Rs. 120000
(D) Rs. 180000
Correct Answer: C
11. Verification refers to:
(A) Confirming ownership
(B) Valuation and Possession
(C) Actual existence
(D) All of these
Correct Answer: D
12. Bringing all parties to an agreement is termed as:
(A) Joinder
(B) Consensus
(C) Contract
(D) None of these
Correct Answer: B
13. Debtors have least profit share due to:
(A) Not participating in operational risk
(B) Payment to trade payables
(C) Current ratio and Quick ratio
(D) None of these
Correct Answer: A
14. An expenditure which occurs non-repeatedly and regularly is known as:
(A) Capital expenditure
(B) Revenue expenditure
(C) Deferred revenue expenditure
(D) None of these
Correct Answer: A
15. Supervisor wage is a part of:
(A) Conversion cost
(B) Operating cost
(C) Variable cost
(D) None of these
Correct Answer: B
16. Unsystematic risk is also known as:
(A) Unavoidable risk
(B) Random risk
(C) Specific risk
(D) None of these
Correct Answer: C
17. Characteristics of the job is also known as:
(A) Job analysis
(B) Job rating
(C) Job description
(D) Job evaluation
Correct Answer: C
18. Which research is conducted when a researcher needed a solution to a problem?
(A) Scientific Research
(B) Applied Search
(C) Descriptive Research
(D) Basic Research
Correct Answer: B (Applied Research)
19. Change in government policy within the content of tax:
(A) Tax policy
(B) Fiscal policy
(C) Monetary policy
(D) Regulatory policy
Correct Answer: A
20. The part of equity having certain return is called:
(A) Common stock
(B) Preferred stock
(C) Growth stock
(D) None of these
Correct Answer: B
21. Human Resource Management deals with:
(A) Insurance matters
(B) Staff functions
(C) Accounting function
(D) None of these
Correct Answer: B
22. Auditing refers to:
(A) Reporting the financial information
(B) Examination of financial information
(C) Preparation of financial statements
(D) Maintaining the ledger accounts
Correct Answer: B
23. The standard deviation is the __________ of the variance:
(A) Square
(B) Square root
(C) Cube
(D) Cube root
Correct Answer: B
24. According to the capital-asset pricing model (CAPM), a security’s expected (required) return is equal to the risk-free rate plus a premium:
(A) Equal to the security’s beta
(B) Based on the unsystematic risk of the security
(C) Based on the total risk of the security
(D) Based on systematic risk of the security
Correct Answer: D
25. Which one renders high profitability?
(A) Asset
(B) Balance sheet
(C) Inventory
(D) Equity
Correct Answer: D
26. In response to market expectations, the credit period has been increased from 45 days to 60 days. This would result in a:
(A) Decrease in sales
(B) Decrease in debtors
(C) Increase in bad debts
(D) Blocking of funds
Correct Answer: D
27. Bonus shares are issued out of:
(A) Capital reserve
(B) Free reserve
(C) Share premium
(D) None of these
Correct Answer: B
28. Which body prepare and publish audit standards:
(A) International Auditing and Assurance Standards Board
(B) International Federation of Accountants
(C) Generally Accepted Auditing Standards
(D) None of these
Correct Answer: A
29. Investment decision making traditionally consists of two steps __________:
(A) Investment banking and security analysis
(B) Buying and selling
(C) Risk and expected return
(D) Security analysis and portfolio management
Correct Answer: D
30. An advertisement which conceal organization identity:
(A) Display advertising
(B) Blind advertising
(C) Native advertising
(D) None of these
Correct Answer: B
31. Each element having equal chances of selection is called:
(A) Probability
(B) Non-probability
(C) Stratified sampling
(D) Quota sampling
Correct Answer: A
32. Banks realize dividend and interest on behalf of customer is included in:
(A) Beneficiary
(B) Agency
(C) Nominee
(D) None of these
Correct Answer: B
33. Which is the primary activity of a commercial bank?
(A) Maintaining deposit accounts including current accounts
(B) Issue and pay cheques
(C) Collect cheques for the bank’s customers
(D) All of these
Correct Answer: D
34. Consider the following statements relating to the World Trade Organization (WTO):
(A) The WTO deals with the global rules of trade between nations.
(B) The goal of the WTO is to help producers of goods and services, exporters and importers to conduct their business.
(C) The WTO, which is a successor body of the General Agreement on Tariffs and Trade, came into being following the Uruguay Round of Negotiations.
(D) All of these
Correct Answer: D
35. Which is the most common measure of central tendency?
(A) Mean
(B) Median
(C) Mode
(D) Range
Correct Answer: A
36. Diversification as a tool for reducing risk by:
(A) Holding more assets is always better than holding fewer
(B) Interesting in more than one asset
(C) Portfolio losses be prevented
(D) None of these
Correct Answer: C
37. When government revenue exceeds government expenditure, it is known as __________ budget.
(A) Surplus
(B) Zero
(C) Balanced
(D) Deficit
Correct Answer: A
38. Which of the following is an example of nonverbal communication?
(A) An online blog where employees in different cities can share ideas
(B) A company logo designed to project the organization’s image
(C) An email message reminding employees of an upcoming staff meeting
(D) A phone call from attorney to a client
Correct Answer: B
39. Which is not a characteristic of a service?
(A) Variability
(B) Intangibility
(C) Inseparability
(D) None of these
Correct Answer: D
40. Petty cash is a part of:
(A) Cash book
(B) Cash receipt
(C) Expense book
(D) Expenditure book
Correct Answer: A
41. Which of the following can be distributed among the shareholders?
(A) Capital reserve
(B) General reserve
(C) Revaluation reserve
(D) None of these
Correct Answer: B
42. Strategy is developed by the visionary chief executive in __________ mode of strategic management:
(A) Planning mode
(B) Adaptive mode
(C) Strategic mode
(D) Entrepreneurial mode
Correct Answer: D
43. The doctrine of impossibility of performance, rendering a contract void, is based on:
(A) a commercial impossibility
(B) a supervening impossibility
(C) just and reasonable ground
(D) an unjust enrichment
Correct Answer: B
44. Price elasticity of demand that __________ is called inelastic.
(A) More than 1
(B) Less than 1
(C) Equal to 1
(D) None of these
Correct Answer: B
45. Debt is a part of:
(A) Working capital
(B) Financial equity
(C) Capital structure
(D) None of these
Correct Answer: C
46. The types of good that are tangible in nature and that can be consumed in few uses are classified as:
(A) Durable goods
(B) Non-durable goods
(C) Services
(D) Augmented goods
Correct Answer: B
47. Selling expenses includes in:
(A) Material cost
(B) Labour cost
(C) Advertising cost
(D) Factory cost
Correct Answer: C
48. The sum of deviations taken from mean is:
(A) 0
(B) 1
(C) 2
(D) 3
Correct Answer: A
49. Audit evidence is considered sufficient when:
(A) There is enough of it to afford a reasonable basis for an opinion on financial statements.
(B) It has been obtained by random selection.
(C) It is competent.
(D) It has the qualities of being relevant, objective, and free from known bias.
Correct Answer: A
50. The career-related consequence of the delayering of organisations most likely option is:
(A) A higher proportion of job moves being demotion
(B) Promotion being a bigger step when it happens
(C) Lateral moves becoming scarcer
(D) All of these
Correct Answer: A
51. Preference shareholders are __________ of the company:
(A) Creditors
(B) Owners
(C) Customers
(D) Borrowers
Correct Answer: B
52. Which of the following statements are incorrect?
(A) Services are intangible
(B) Services are perishable
(C) Services can be co-produced with customers
(D) Services are invariable
Correct Answer: D
53. The two internal elements of SWOT analysis are:
(A) Weaknesses and threats
(B) Opportunities and threats
(C) Strength and weaknesses
(D) Strengths and threats
Correct Answer: C
54. An organizational structure in which more than one type of departmentalization is employed is called:
(A) Mixed departmentalization
(B) Process departmentalization
(C) Matrix form
(D) Centralization
Correct Answer: A
55. Which of these options, apart from cash, are instruments to distribute profits to shareholders?
(A) Stock purchase
(B) Bonus shares
(C) Stock split
(D) All of these
Correct Answer: B
56. __________ is the subject matter of Macroeconomics:
(A) Factory pricing
(B) Growth theory
(C) Individual incomes
(D) Market structures
Correct Answer: B
57. Joint venture account is a:
(A) Nominal account
(B) Personal account
(C) Real account
(D) Dummy account
Correct Answer: B
58. The basic factors of production are land, labour, capital and:
(A) Enterprise
(B) Investment
(C) Machinery
(D) Resources
Correct Answer: A
59. Which of the following is a measure to reduce inequality of income?
(A) Promotion of industries
(B) Social securities
(C) Granting of credit to poor on concessional rate
(D) None of these
Correct Answer: C
60. The author of the Wealth of Nations is:
(A) Adam Smith
(B) William Robins
(C) Ravid Recardo
(D) None of these
Correct Answer: A
61. The difference between desired service and the level of service considered adequate is known as:
(A) Service Quality
(B) Service failures
(C) Tolerance Zone
(D) Service recovery
Correct Answer: C
62. The concept of consumer surplus was developed by:
(A) Marshall
(B) Gotham
(C) Benethan
(D) None of these
Correct Answer: A
63. Which is a system of selling goods directly to customers through a network of self-employed people:
(A) Multilevel marketing
(B) Whole sale marketing
(C) Vertical marketing
(D) None of these
Correct Answer: A
64. An exceptional demand curve is one that slopes:
(A) Upward to the left
(B) Downward to the right
(C) Upward to the right
(D) Horizontally
Correct Answer: C
65. Authorized share capital is also known as:
(A) Registered capital
(B) Issued capital
(C) Paid up capital
(D) None of these
Correct Answer: A
66. Net loss occurs when:
(A) Expenses are greater than income
(B) Expenses are less than income
(C) Liabilities are greater than income
(D) None of these
Correct Answer: A
67. The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as:
(A) Current assets
(B) Fixed assets
(C) Intangible assets
(D) Investments
Correct Answer: A
68. Liquid Ratio is equal to liquid assets divided by:
(A) Current Liabilities
(B) Total Liabilities
(C) Contingent Liabilities
(D) None of these
Correct Answer: A
69. Liabilities are which of the following:
(A) Resources
(B) Obligations
(C) Future benefits
(D) Expenses
Correct Answer: B
70. Goods returned by customer should be debited to which of the following accounts:
(A) Sales income account
(B) Sales account
(C) Return inward account
(D) Expenses account
Correct Answer: C
71. World Bank is also known as:
(A) International Bank for Development
(B) International Bank for Reconstruction and Development
(C) International Bank for Infrastructure and Development
(D) International Bank for Design and Development
Correct Answer: B
72. International Women’s Day is celebrated each year on:
(A) 6 March
(B) 8 March
(C) 10 March
(D) 12 March
Correct Answer: B
73. Government run by officials is called:
(A) Democracy
(B) Gerontocracy
(C) Bureaucracy
(D) Kakistocracy
Correct Answer: C
74. US entered into World War II due to:
(A) Annexation of Poland by Germany
(B) Aerial bombing on Poland
(C) Japanese attack on Pearl Harbour
(D) Non-payment of dues by Germans
Correct Answer: C
75. Where COP26 was took place between 9 and 20 November 2021:
(A) Stockholm
(B) Rome
(C) Glasgow
(D) None of these
Correct Answer: C
76. All India Muslim League observed the “Direct Action Day” on:
(A) August 06, 1944
(B) August 28, 1945
(C) August 16, 1946
(D) August 02, 1947
Correct Answer: C
77. When Mushtaq Ahmad Khan died:
(A) 2012
(B) 2014
(C) 2016
(D) 2018
Correct Answer: D (2018)
78. Roshaneh Zafar is the founder of:
(A) Citizen Foundation
(B) Alkhidmat Foundation
(C) Kashf Foundation
(D) None of these
Correct Answer: C
79. Name the country which is not a neighbor of Pakistan:
(A) Iran
(B) Afghanistan
(C) Russia
(D) China
Correct Answer: C
80. The Partition of Bengal was occurred on:
(A) 16 October 1905
(B) 18 October 1905
(C) 20 October 1905
(D) 22 October 1905
Correct Answer: A
