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Online Tests
PPSC Economics Chapter 1 Basic Economics MCQs With Answers
Question # 1
Which of the following is not a macro economic issue.
Choose an answer
Unempolyment
Inflaction
The wages paid to footballers
Economic growth
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Question # 2
Demand pull inflation may be caused by
Choose an answer
An increase in costs
A reduction in interest rate
A reduction in government spending
An outward shift in aggregate supply
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Question # 3
Why does it make sense in assume that people are rational, if you want to predict their behavior.
Choose an answer
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.
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Question # 4
A public good
Choose an answer
Is provided by the government
Is free
Has the properties of being non excludable and non diminishable
Has external costs
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Question # 5
The sacrifice involved when you choose a particular course of action is called the
Choose an answer
Alterative
Opportunity cost
Consumer cost
Producer cost
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Question # 6
An independent assessment of the impact of firm's activities on society is called a.
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Financial audit
Balance sheet
Profit and uses account
Social audit
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Question # 7
In a market system sellers act in ___ interest, but this leads to behaviors in ___ interest.
Choose an answer
Self : self
Self ; society's
Society's ; society's
society's, self
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Question # 8
Who advocates laissez fair.
Choose an answer
Monetarists
Classical
Neo classical
Modern
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Question # 9
An increase in aggregate demand if aggregate supply is totally inelastic will.
Choose an answer
Increase price but not output
Increase output but not price
Increase out put and price
Decrease output and price
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Question # 10
When marginal revenue equals marginal cost
Choose an answer
Total revenue equal total cost
There is the biggest positive difference between total revenue and total cost
there is the biggest negative difference between total revenue and total cost.
Profits are zero
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Question # 11
In perfect competition.
Choose an answer
the products firm offer are very similar
Products are heavily differentiated
A few firms dominate the market
Consumers have limited information
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Question # 12
To be allocatively efficient ta firm must produce where
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the total cost equals demand
the average revenue equals the marginal revenue
The price equals the average cost
The price equals the marginal cost
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Question # 13
If an economy is productively efficient.
Choose an answer
Everyone is wealthy
Resources are unemployed
More of one product can only be produced if less of another product is produced.
The distribution of income is equal
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Question # 14
A model of game theory of oligopoly is known as the
Choose an answer
Prisoner's dilemma
Monopoly cell
Jailhouse sentence
Jury box
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Question # 15
In monopolistic competition
Choose an answer
Demand is perfectly elastic
Products are homogeneous
Marginal revenue = pirce
The marginal revenue is below the demand curve and diverges
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Question # 16
A profit maximizing firm will employ labour up to the point where.
Choose an answer
Marginal revenue = Marginal product
Margial cost = Marginal product
Marginal revenue product = Average cost of labour
Marginal revenue product = Marginal cost of labour
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Question # 17
Revealed preference theory was presented by.
Choose an answer
Samuelson
Hicks
Marshall
rICARDO
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Question # 18
Why might a country resist globalization.
Choose an answer
Greater choice of final products
Greater choice of supplies
Greater competition for domestic firms
More markets to sell to
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Question # 19
Developing economics usually have
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Low GDP per captia
Low CPI
Large balance of payments surpluses
Large budget surpluses
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Question # 20
Which of the following is not one of the basic economic questions.
Choose an answer
What is produce
Who to produce for
How to produce
How to maximize economic growth
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Question # 21
Firm in oligopoly are likely to.
Choose an answer
Invest heavily in branding
Act independently of other firms
Try to differentiate its products
Try to be a price maker
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