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

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PPSC Economics Topic 2 Micro Economics

00:00
Question # 1

As long as all prices remain constant an increase in money income results in.

Question # 2

If leisure is an inferior good the individuals supply curve for labor is.

Question # 3

To maximize revenue, an excise tax should be imposed on a product

Question # 4

The quantity of Y demanded increases by 6% when income changes, and income elasticity of demand is -0.9 income

Question # 5

The exit of firms out of a competitive market causes the supply curve to.

Question # 6

Economic growth is shown on the production possibility frontier as.

Question # 7

Which of the following shifts the demand curve for hot dogs leftward.

Question # 8

A normal good can be defined as one which consumers purchase more of as.

Question # 9

in monopolistic competition the firms desire to sell more output at the equilibrium because.

Question # 10

A market demand curve can be derived by adding all the individual demand curves

Question # 11

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 # 12

In monopoly there is.

Question # 13

In an industry with a falling long term supply curve, which of the following is true.

Question # 14

Extension and contraction of demand mean

Question # 15

In order to constitute an oligopolistic market structure.

Question # 16

When the demand curve is vertical its shows that the demand is.

Question # 17

If the production function is Q = 8 KL the marginal rate of technical substitution of labor for capital is.

Question # 18

Which of the following statements abut the relationship between marginal cost and average cost is correct.

Question # 19

The short run supply curve for a competitive industry is derived by.

Question # 20

If the demand curve for a good is downward sloping then the good must be.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 If the price of factor A is Rs.8.00 per hour, and its marginal product is 10 units, and the price of factor B is Rs. 5.00 and its marginal product is 9, is the producer is likely to.
A. Hire more of A and less of B
B. Hire more of B and less of A
C. Start paying factor A more
D. Try to use factor B more productively
2 In a typical cartel agreement the cartel maximizes profit when it.
A. Behaves like a monopoly
B. Behaves like a perfectly competitive firm
C. Behaves like a duopoly
D. Is flexible in enforcing production targets
3 The price of salsa rises, How does the increase in the price of salsa affect the supply of salsa.
A. The supply of salsa increases
B. The supply of salsa decreases
C. There is no change to either the supply of salsa or the quantity supplied of salsa
D. There is no change to the supply of salsa but the quantity supplied of salsa increases
4 A demand curve that is an equilateral hyperbola is.
A. Perfectly elastic
B. Relatively elastic
C. Unit elastic
D. Relatively inelastic
5 A market demand curve can be derived by adding all the individual demand curves
A. Vertically
B. Horizontally
C. In parallel
D. Any of the above as long as it is consistent
6 In capitalistic economy price is determined by
A. Supply and production
B. Demand and production
C. Demand and consumption
D. Demand and supply
7 The downward kinked demand curve facing the individual oligopolistic implies that
A. He face price certainlty
B. Competitors have a tendency to follow price decreases but not price increase
C. Total revenue remains same if a firm increases price
D. None of these
8 An indifference curve shows various combinations to goods Which gives the consumer.
A. Equal level of utility
B. Low level of utility
C. High level of utility
D. None of these
9 A monopoly market.
A. Generally falls to maximize total economic well being.
B. Always maximizes total economic well being.
C. always minimizes consumers surplus
D. Generally falls to maximum produce surplus
10 A utility contour shows all the alternative combinations of two consumption goods that.
A. Can be produced with a given set of resources and technology
B. Yield the same total of utility
C. Can be purchased with a given budget at given prices
D. Equate the marginal utilities of these goods and therefore make the consumer indifferent between them.

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