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

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PPSC Economics Topic 2 Micro Economics

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Question # 1

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

Question # 2

"Principles of economics" is the book of

Question # 3

In the short run a competitive firm's supply curve is.

Question # 4

the ouput where diminishing return to production begin is also the ouput where

Question # 5

Elasticity of demand of luxurious goods is always more elastic

Question # 6

Which skills are most likely to be paid for by the employer.

Question # 7

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

Question # 8

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

Question # 9

The are price elasticity of demand is approximately

Question # 10

Average fixed cost

Question # 11

The demand for labor will be more elastic if

Question # 12

Because a monopoly hires workers up to the point where their marginal revenue product equals the wage rate the monopoly will.

Question # 13

Law of demand is not applicable on

Question # 14

An economy that falls to realize all of its p9otential gains from specialization is.

Question # 15

Law of variable proportion sis applicable in.

Question # 16

"The quantity demanded increases as its price increases and falls as its price falls" is called given goods, is presented by.

Question # 17

In contract to perfectly competitive markets monopolists

Question # 18

Which of the following is correct for the demand and supply schedules given above.

Question # 19

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

Question # 20

When the price of a pizza decreased from 1200 Rupees to 1000 Rupees, it is definitely the case that the.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 One of the difference between a perfectly competitive fir's long run equilibrium and the long run equilibrium of a monopolistically competitive firm is that
A. LMS = MR under perfect competition but not under monopolistic competition
B. SAC = LAC under perfect competition but not under monopolistic competition
C. SMC = LMC under perfect competition but not under monopolistic competition
D. LAC = LMC under perfect competition, but not under monopolistic competition
2 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.
A. Positive
B. Negative
C. Zero
D. Cannot tell without more information
3 According to Keynes, when the great depression started the government should be.
A. Done nothing
B. Decreased the money supply
C. Had a large increase in government spending.
D. Enacted high tariffs such as the smoot Hawley tariff
4 Allocative efficiency is achieved under which of the following market structures.
A. Perfect competition
B. Monopolistic competition
C. Oligopoly
D. Monopoly
5 The marginal rate of substitution for two goods can be obtained from
A. The slope of the demand curve
B. The slope of the indifference curve
C. The ration of first derivative of the total utility functions
D. B and D both
6 BATA's marginal utility per dollars is .8 for both shorts and running shoes,. To attain her consumer equilibrium BATA should.
A. Buy an additional pair of shorts
B. Buy an additional pair of both items
C. Possibly not make any adjustment in her behavior
D. Sell her shorts and keep her shoes
7 A production possibilities curve indicates that when resources are being used efficiently
A. More of one good cna be produced only if less of another good is produced
B. More of one good can be produced only if its price is lowered
C. Producing more of one good result in greater production of other goods
D. More of one good can be product without producing less of other goods
8 If there are 50 firms in a industry each selling 2% of the total sales the concentration ratio is.
A. 50%
B. 2%
C. 8%
D. 100%
9 Which of the policies in the table above an increase in social welfare according to pareto efficiency.
A. Policy A
B. Polies A and B
C. Policies A and D
D. Policies C a, -d D
10 If the price of product X falls and this change increases the demand for product Y then.
A. X and Y are complements
B. X and Y are substitutes
C. X is an inferior good
D. Y is an inferior good

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