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

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 # 2

A price decrease and an increase in income are similar in that

Question # 3

In the short run no firm operates with a loss unless

Question # 4

Which of the following would cause the demand curve for an input to shift.

Question # 5

In price discrimination, which section of the market is charged the higher price.

Question # 6

In perfect competition there is.

Question # 7

Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment ceteris paribus, Increases equilibrium income and the budget.

Question # 8

A long-run total cost curve can be constructed from

Question # 9

In pure monopoly there is.

Question # 10

Assume a cosumer buys 25 units of good X at Rs.8 and 10 units of good Y at Rs. 6 in 1980. If Px = Rs. 6 and Py = Rs. 4 in 1970 the pasasche index is.

Question # 11

If A, B, C and D are any four market baskets, and if the consumer has ranked them so that D is preferred to C, A is hot preferred to B, and B is not preferred to c then.

Question # 12

Everyone's absolute income doubles family A's APC, according to the simple Keynesian consumption function is expected to.

Question # 13

The ABC corporation.

Question # 14

Skills that embodied in a person are called.

Question # 15

Which of the following is a characteristic of monopolistic competition.

Question # 16

The income effect of a price change

Question # 17

In the neighborhood of the long run equilibrium of a monopolistically competitive firm average cost will be.

Question # 18

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

Question # 19

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

Question # 20

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

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


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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 Economic growth is shown on the production possibility frontier as.
A. The curvature of the PPF
B. An inward shift in the PPF
C. An outward shifts in the PPF
D. A movement from one point on the PPF to another
2 Given a proportional income tax and a government budget that is currently in balance, an increase in autonomous investment ceteris paribus, Increases equilibrium income and the budget.
A. Remains is balance
B. Has a surplus
C. Has a deficit
D. None of these
3 The key feature of oligopoly is.
A. Excess capacity
B. High profitability
C. Product differentiation
D. Interdependence of firms
4 A profit maximizing monopolist in two separate markets will
A. Charge different price according to elasticity
B. Charged same price
C. Charged very high price
D. Charged very low price
5 Which of the following explains why demand curves slope downward.
A. Prices and income
B. substitutes and complements
C. Resources and technology
D. Substitution effect and income effect
6 Which skills are most likely to be paid for by the employer.
A. General skills
B. Specific skills
C. Educational skills
D. None of these
7 Which of the following is a characteristics of monopolistic competition.
A. One seller serving the entire market
B. When each firm sells an identical product
C. When firms do not compete on a product's quality price and marketing.
D. When firms are free to enter and exit the market
8 If leisure is an inferior good the individuals supply curve for labor is.
A. Back ward bending
B. Completely inelastic
C. Upward sloping
D. Perfectly elastic
9 the ouput where diminishing return to production begin is also the ouput where
A. Marginal cost is at a minimum.
B. Average total cost is at a minimum
C. Average variable cost is at a minimum
D. Marginal and average
10 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

Test Questions

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