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

In perfect competition the industry will be in equilibrium.

Question # 2

The price elasticity of demand is teh same thing as the negative of the

Question # 3

Perfect competition implies

Question # 4

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

Question # 5

If the income elasticity of demand is +4

Question # 6

Suppose taht an exise tax is imposed on the monopolist's product if the monopolist's marginal cost is horizontally the relevant range, which of the following statements must be true.

Question # 7

If there are 50 firms in a industry each selling 2% of the total sales the concentration ratio is.

Question # 8

If the price of both goods increase by the same percent , the budget line will.

Question # 9

A monopolist will discontinue production if

Question # 10

According to Keynes, when the great depression started the government should be.

Question # 11

Duopoly is a market situation when there is

Question # 12

In pure monopoly there is.

Question # 13

If both supply and demand for a good increase at the same time which of the following must also increase

Question # 14

Which of the following concepts represents the extra revenue a firm neceives from the services of an additional unit of a factor of production.

Question # 15

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 # 16

A price cross elasticity of 0.81 between X and Y shows that.

Question # 17

Allocative efficiency is achieved under which of the following market structures.

Question # 18

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

Question # 19

The classical are of the view that utility can be.

Question # 20

Law of variable proportion sis applicable in.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 in monopolistic competition the firms desire to sell more output at the equilibrium because.
A. Price is more than marginal cost
B. Price is less than marginal cost
C. Price is less than average cost
D. Price more than average cost
2 Goods which can be consume directly are
A. Producer goods
B. Consumer goods
C. Free goods
D. Economics goods
3 The tax is question 52 is
A. Progressive's
B. Regressive
C. Proportional
D. None of these
4 A monopolist will discontinue production if
A. Marginal revenue is less than marginal cost
B. Marginal revenue is less than average total cost
C. Marginal revenue is less the average fixed cost
D. Price is less than average variable cost
5 The firm under monopolistic competition is likely to produce less and set a higher price than under perfect competition because.
A. The firm faces decreasing returns to scale
B. The firm faces increasing costs
C. The firm must incur selling expenses including advertising.
D. The firm faces a downward sloping demand curve
6 "The quantity demanded increases as its price increases and falls as its price falls" is called given goods, is presented by.
A. Allen
B. Marshall
C. Adam smith
D. Robert griffin
7 Which of the following is correct with respect to the Paasche index.
A. The consumer Price index is an example of the Paasche index.
B. The Paasche index is biased upward
C. The Passche index always exceeds 1
D. The Paasche index uses given period quantities
8 Which of the following would cause the demand curve for an input to shift.
A. A change in technology
B. A change in demand for the product being produced
C. An increase in the number of firms in the industry
D. All of the above
9 In monopolistic competition firm sell
A. Same goods
B. Differential goods
C. Inferior goods
D. Superior goods
10 Immediately after a through we would expect to have al
A. Peak
B. Recession
C. Recovery
D. Another trough

Test Questions

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