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 monopoly the firm can

Question # 2

In monopolistic competition firm sell

Question # 3

As long as the principle of diminishing marginal utility is operating any increased consumption of a good.

Question # 4

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

Question # 5

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

Question # 6

Law of variable proportion sis applicable in.

Question # 7

If the government lower taxes by $10 billion, the Real GDP will rise by

Question # 8

In the short run the competitive firm will produce if.

Question # 9

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

Question # 10

An exceptional demand curve is.

Question # 11

In perfect competition, a seller by increasing price.

Question # 12

When the marginal physical product of labor is 800 - 2N , the price of goods is Rs. 2, and the cost of labor is Rs. 4 per unit, the quantity of labor employed is.

Question # 13

In pure monopoly there is.

Question # 14

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 # 15

In perfect competition price is settled by

Question # 16

If the prices of both goods increase by the same percent the budget line will

Question # 17

The income elasticity of demand

Question # 18

A combination labour and capital where the cost of an output is minimized is called.

Question # 19

Which of the policies in the table above an increase in social welfare according to pareto efficiency.

Question # 20

Short run is a time frame where a firm can change its.,

Prepare Complete Set Wise PPSC Economics Topic 2 Micro Economics MCQs Online With Answers


Topic Test

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 An exceptional demand curve is.
A. Vertical
B. Horizontal
C. Downward sloping
D. Positive slope
2 In pure monopoly there is.
A. A lot of firms
B. Two firms
C. A single firm
D. Many firms
3 An income demanded curve of an inferior good is.
A. Same in slope
B. Upward is slope
C. Downward in slope
D. None of these
4 Suppose an individual spends all his income on only two goods, good X and good Y moreover suppose that you were asked to derive his price consumption curve for good Y Which of the following would be allowed to very.
A. Money income
B. The tastes of the consumer
C. The price of good X
D. The price of good Y
5 If the prices of both goods increase by the same percent the budget line will
A. Shift parallel to the left
B. shift parallel to the right
C. Pivot about the x axis
D. Pivot abut the Y axis
6 Price elasticity at a given price is not affected by.
A. The price of complements
B. The price of substitutes
C. The consumer's income
D. A change in supply
7 If average variable cos tis less then marginal cost then certainly.
A. Per unit total cost is rising
B. Per unit total cost is constant
C. Per unit total cost is falling
D. Per unit variable cost is rising
8 "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
9 For a competitive firm the demand curve
A. A horizontal
B. Coincides with the marginal revenue curve
C. Coincides with the average revenue curve
D. All of the above
10 If the income elasticity of demand is +4
A. The good is an inferior good
B. The good is an inelastic normal good
C. The good is an elastic normal good
D. the good is an elastic inferior good

Test Questions

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