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

In order to practice price discrimination which of the following is needed.

Question # 2

If Supply and demand both decrease simultaneously. Which of the following will happen.

Question # 3

An elasticity coefficient of -1 means that

Question # 4

Oligopoly is a market structure in which

Question # 5

When the demand curve is vertical its shows that the demand is.

Question # 6

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

Question # 7

"Principles of economics" is the book of

Question # 8

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

Question # 9

Firms in monopolistic competition compete on

Question # 10

Price elasticity at a given price is not affected by.

Question # 11

A consumer is said to be in equilibrium when the marginla utility and price of a commodity

Question # 12

Firm A's annual profit is.

Question # 13

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.

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

When Daimler Benz maker of the Mercedes bought Chrysler the merger was

Question # 16

In substitution effect a consumer

Question # 17

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

Question # 18

"Treating an individual as typical of a group" in the definition of.

Question # 19

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

Question # 20

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

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 If a monopolist's demand curve is downward sloping and linear, then its total revenue curve must be.
A. Identical to the demand curve
B. A ray from the origin with a slope equal to price
C. negative sloped with twice the slope of the demand curve
D. A rising function of output that increases at a decreasing rate , reaches a maximum, then falls.
2 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
3 A consumer is said to be in equilibrium when the marginla utility and price of a commodity
A. More
B. Less
C. Irrelevant
D. Equal
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 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
6 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
7 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.
8 In the long run a profit maximizing monopoly produces an output volume that
A. Equates long run marginal cost with marginal revenue
B. Equates long run average revenue
C. Assures permanent positive profit
D. Is correctly described by both a and c
9 If the price of an apple increased from 50 to 60 the quantity demanded will decrease because of.
A. The substitution effect only
B. The income effect only
C. A change in income
D. The substitution and income effects.
10 The firms average variable cost of the 150th unit is.
A. Rs.15
B. Rs.17
C. Rs.20
D. Rs.9

Test Questions