PPSC Economics Topic 2 MCQS Test Preparation

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MCQ's Test For PPSC Economics Topic 2 Micro Economics

Try The MCQ's Test For PPSC Economics Topic 2 Micro Economics

  • Total Questions20

  • Time Allowed20

PPSC Economics Topic 2 Micro Economics

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Question # 1

Given the cost data indicated in the table above the average variable cost of producing 7 units of output is

Question # 2

If the price of product X falls and this change increases the demand for product Y then.

Question # 3

A linear homogenous production function would reveal.

Question # 4

Firms entering a perfectly competitive market will cause the price of the product to

Question # 5

The arc elasticity formula is used to estimate elasticity when

Question # 6

A long-run total cost curve can be constructed from

Question # 7

The price of salsa rises, How does the increase in the price of salsa affect the supply of salsa.

Question # 8

For a competitive firm the demand curve

Question # 9

When Daimler Benz maker of the Mercedes bought Chrysler the merger was

Question # 10

Company A estimates the price elasticity of demand for its products.3.0 The price of the product is Rs. 15. If MC = 2+40, the profit maximizing level of output.

Question # 11

The monopolization of the competitive market results in a deadweight loss to society of

Question # 12

The marginal rate of substitution for two goods can be obtained from

Question # 13

A demand curve shows that relation between price and demand.

Question # 14

Skills that can be transferred to other employers are called.

Question # 15

If an increase in the price of gasoline increases the demand for gas hybrid cars, then

Question # 16

The total utility of the third unit of product x is.

Question # 17

Some goods are not closely related to each other and are neither substitutes nor complements for such goods the cross price elasticity of demand would be.

Question # 18

How much will a speculator invest now if he expects to earn Rs. 144 two years from now assuming the nominal rate of interest is 20%

Question # 19

If a firm which polluted the water of area had to pay all social cost would have

Question # 20

Law of demand is not applicable on

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 A normal good can be defined as one which consumers purchase more of as.
A. Price fall
B. Price rise
C. Income fall
D. Incomes increase
2 Micro economics studies such topics as
A. The factors that determine inflation
B. The forces that influence the price of shoes
C. The determinants of total output
D. Whether the unemployment rate will rise or fall
3 Indifference curve is alwyas.
A. Vertical
B. Horizontal
C. Concave
D. Convex
4 In the short run a competitive firm's supply curve is.
A. Its average variable cost cure to the right of the marginal cost curve.
B. Its marginal cost curve above the average variable cost curve.
C. It marginal cost curves above its average cost curve.
D. The horizontal summation of the marginal cost curves
5 If A is preferred to B and B is preferred to C and there is indifference between A and D
A. D is preferred to C
B. B is preferred to D
C. There is indifference between C and D
D. There is indifference between B and D
6 When the quantity demanded is changed on the same price
A. the demand curve shifts upward
B. The demand curve shifts downward
C. Movement on the same demand curve
D. None of these
7 The average total cost of a wedge increases from Rs. 0.79 ro Rs. 0.83 Evidently
A. AFC exceeds AVC
B. MC is between Rs. 0.79 and Rs. 0.83
C. AVC is Rs. 0.83
D. MC is greater than Rs. 0.83
8 Labour has the following characteristics accept one.
A. It cannot be separated form labourer
B. It cannot be stored
C. Its supply cannot be increase at once
D. Bargaining power of laborer is very strong
9 Oligopoly is a market structure in which
A. Many firms each produce a slightly differentiated product
B. One firm produces as unique product
C. A small number of firms compete
D. Many firms produce an identical product
10 Projects A,B,C,D,E cost Rs. 100, Rs, 200, Rs. 300, Rs. 400, and Rs. 500 with MEC's of 0.07, 0.06,0.09 ,0.10 and 0.11 respectively. The market rate of interest is 8% Total investment spending is
A. Rs. 1500
B. Rs.1300
C. Rs.1200
D. Rs.300

Test Questions