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

The law of diminishing marginal returns to a factor of production is.

Question # 2

The downward kinked demand curve facing the individual oligopolistic implies that

Question # 3

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

Question # 4

Economic growth is shown on the production possibility frontier as.

Question # 5

The income effect of a price change

Question # 6

If X , Y, and Z are willing to work for Rs. 4, Rs, 5, and Rs.6 respectively but N pays them Rs. 7 each, producers surplus is.

Question # 7

The demand for labor is the same as the

Question # 8

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

Question # 9

Under perfect competition, the price system automatically result in efficient output selection when

Question # 10

Which of the following is a function of money

Question # 11

The arc income elasticity of demand is approximately

Question # 12

Naveed purchases product M for which his income elasticity of demand is negative Apparently product M is.

Question # 13

The "Law of demand" states that other things remaining the same the quantity demanded of any good is.

Question # 14

The elasticity of demand for cigarettes by a non smoker is.

Question # 15

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

Question # 16

Marginal cost is the change is cost the result from a one unit increase in.

Question # 17

Perfect competition implies

Question # 18

In case of complimentary goods, if the price of one commodity falls there will be.

Question # 19

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market we have.

Question # 20

If a simultaneous and equal percentage decrease in the use of all physical inputs leads to a larger percentage decrease in physical output a firm's production function is said to exhibit.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 In contract to perfectly competitive markets monopolists
A. Do no have to worry about market demand
B. Sell only if demand is inelastic
C. Can never incur an economic loss
D. Can earn an economic profit indefinitely
2 If the estimated values of Y and Py in 1987 are Rs. 30,000 and Rs. 8 respectively the marginal revenue of X is.
A. 260 - 160 x
B. 420 - 4Qx
C. 240 - 16 Px
D. 80 - 4Qx
3 At level of income and output of 100 in the diagram above
A. APC < 1
B. Equilibrium occurs
C. Consumption expenditures are equal to 100
D. MPC > APC
4 The statement that marginal cost = marginal revenue leads to profit maximization of loss minimization is true.
A. All the time
B. Only in the long run
C. Only if "marginal cost is rising at the point of equality.
D. Only if average total cost is falling at the point of equality
5 In the short run the competitive firm will produce if.
A. Price is equal to marginal cost
B. Price is equal to marginal revenue
C. Price is equal to total cost
D. Price is equal to are greater than average variable cost.
6 An oligopolistic industry can be characterized by all of the following except
A. May sellers
B. mutual interdependence
C. Economies of scale
D. A homogenous product
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 Elasticity of demand of luxurious goods is always more elastic
A. More elastic
B. Less elastic
C. Equal elastic
D. None elastic
9 The Marginal cost of product W exhibiting positive externalities is McW = 25 + 5 Qs, the competitive price for each unit of W (Pw) is Rs. 175 and the positive externality is worth Rs. 100 to society for each unit produced. Society considers product W under produced by how many units.
A. 10 Units
B. 15 Units
C. 20 Units
D. 5 units
10 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

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