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

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Question # 1

A monopoly there is

Question # 2

If both supply and demand for a good increase at the same time which of the following must also increase

Question # 3

In the short run if price falls the firm will respond by

Question # 4

A monopolist will discontinue production if

Question # 5

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 # 6

The epigram "time is money" expresses , in part, the concept of.

Question # 7

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

Question # 8

If the price of factor A is Rs.8.00 per hour, and its marginal product is 10 units, and the price of factor B is Rs. 5.00 and its marginal product is 9, is the producer is likely to.

Question # 9

The arc elasticity formula is used to estimate elasticity when

Question # 10

The exit of firms out of a competitive market causes the supply curve to.

Question # 11

Price discrimination occurs when

Question # 12

Firms in monopolistic competition compete on

Question # 13

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

Question # 14

An entrepreneur who collects profits in the short run for a new invention is collecting.

Question # 15

if a consumer is purchasing only two commodities X and Y , and the marginal utility per dollar of Y is greater than the marginal utility per dollar of X to maximize total utility with the limited income the consumer should buy.

Question # 16

Law of variable proportion is also called.

Question # 17

The conditions necessary for a firm to be able to price discriminate include.

Question # 18

The arc income elasticity of demand is approximately

Question # 19

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

Question # 20

If average fixed cost is 40 and average variable cost is 80 for a given output we the know that average total cost is.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 The arc elasticity formula is used to estimate elasticity when
A. The product is thought to be inelastic
B. The product is thought to be elastic
C. The demand function is known
D. There are two observations of price and quantity
2 Which of the following is an automatic stabilizer.
A. Unemployment benefits
B. Spending on education
C. Defense spending
D. Net interest
3 If there is no price surprise, total output is.
A. 50
B. 150
C. 400
D. 200
4 The Isoquant curve shows different combinations of two factors of production which give the producer.
A. Different level of output
B. High level of output
C. low level of output
D. Same level of output
5 Which of the following correct about firms in an oligopoly.
A. Each firm has complete control over its own selling price
B. All firms independently charge monopoly prices
C. No one firm controls price but each has an influence on the price
D. There is no competition in oligopoly industries
6 Short run is a time frame where a firm can change its.,
A. Total cost
B. Total production
C. Plant size
D. None of these
7 If a monopolist's has only fixed costs and chooses that output at which marginal cost equals price. it will
A. Earn positive economic profits
B. Earn zero economic profits
C. Incur a loss equal to its variable costs
D. Incur a loss equal to its fixed costs
8 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
9 When the quantity demanded is changed on the same price
A. the demand curve shifts upward
B. The demand curve shifts downward
C. Movement on the same demand curve
D. None of these
10 If both supply and demand for a good increase at the same time which of the following must also increase
A. The equilibrium price
B. The use of substitutes
C. The equilibrium quantity
D. All of the above

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