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

00:00
Question # 1

The statement that marginal cost = marginal revenue leads to profit maximization of loss minimization is true.

Question # 2

The price elasticity of demand will increase with the length of the period to which the demand curve pertains because.

Question # 3

A monopsony is

Question # 4

When the price of an inferior goods falls ceteris paribus the substitution effect leads to ________ in the quantity purchased and the income effect leads to _______ in the quantity purchased.

Question # 5

An income demanded curve of an inferior good is.

Question # 6

Foundation of law of demand is.

Question # 7

A firm that is a price taker faces a perfectly

Question # 8

For a competitive firm the demand curve

Question # 9

Duopoly is a market situation when there is

Question # 10

The income effect of a price change

Question # 11

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 # 12

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

Question # 13

when there is huge change in demand following method is used to measure elasticity of demand.

Question # 14

The fundamental reason people must choose which goods to buy and consume is because of.

Question # 15

A profit maximizing monopolist in two separate markets will

Question # 16

Law of variable proportion is also called.

Question # 17

Which of the following is an automatic stabilizer.

Question # 18

If a monopolist faces a downward sloping market demand curve its.

Question # 19

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

Question # 20

The price of Ketchup at a market increases by 12.5% per can, which results in a decrease in quantity purchased by 40% per week, the demand is.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 In price discrimination, which section of the market is charged the higher price.
A. The section with the richest people
B. The section with the oldest people
C. The section with the most inelastic demand
D. The section with the most elastic demand
2 An -increase the expected future price of a good.
A. Increases its demand
B. Decreases its demand
C. Increases its supply
D. Has no effect on either its demand or its supply.
3 Ti access internet services consumers must use a computer if computer prices fall, what is the effect on the demand for internet services.
A. The demand for internet services increases.
B. The demand for internet services decreases
C. The demand for internet services does not change
D. The demand for internet services could increase, decrese, or stay the same depending on other factors.
4 Which of the following will not be a determinant of the price elasticity of demand for a commodity.
A. The absence of substitute for the good.
B. The presence of substitutes for the good.
C. The importance of the commodity in consumers budgets
D. The cost of producing the commodity
5 The demand curve for labor for a monopolist when other inputs are fixed is equal to its
A. Marginal value product curve
B. Marginal revenue product curve
C. Horizontal summation of the firms demand curve at different output prices
D. Marginal physical product curve
6 The are price elasticity of demand is approximately
A. 0.3
B. 3.3
C. 6.0
D. 0.2
7 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.
A. Rs. 4
B. Rs.7
C. Rs.5
D. Rs.6
8 If average fixed cost is 40 and average variable cost is 80 for a given output we the know that average total cost is.
A. 40
B. 120
C. 80
D. None of the above
9 The conditions necessary for a firm to be able to price discriminate include.
A. Segment able markets
B. Difference in price elasticity of demand among the segments
C. The inability of customers to transfer products
D. All of the above
10 The law of diminishing marginal returns to a factor of production is.
A. Not applicable
B. Another explanation of economies of scale
C. A principle of scales
D. None of these

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