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

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 # 2

In contract to perfectly competitive markets monopolists

Question # 3

The arc elasticity formula is used to estimate elasticity when

Question # 4

If the price of product X falls and this change increases the demand for product Y then.

Question # 5

The classical are of the view that utility can be.

Question # 6

The Isoquant curve shows different combinations of two factors of production which give the producer.

Question # 7

A utility contour shows all the alternative combinations of two consumption goods that.

Question # 8

A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called.

Question # 9

Price elasticity at a given price is not affected by.

Question # 10

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

Question # 11

Which of the following is not a basic assumption of perfect competition.

Question # 12

In monopoly there is.

Question # 13

Which of the following correct about firms in an oligopoly.

Question # 14

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

Question # 15

If the estimated values of Y and Py in 1987 are Rs. 20,000 and Rs. 6 respectively, what is the maximum price of X.

Question # 16

The negative slope of the demand curve indicates that there is _______ relationship between the price and the quantity demanded.

Question # 17

Economists tend to disagree primarily about.

Question # 18

An -increase the expected future price of a good.

Question # 19

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

Question # 20

A firm charges Rs. 800 for its unique word processor. If total revenue is Rs. 56,000 in July, how many word processor were sold that month.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 The demand for labor is the same as the
A. Marginal revenue product
B. Marginal physical product
C. Marginal cost
D. Wage
2 A long-run total cost curve can be constructed from
A. An income consumption curve
B. A price consumption curve
C. Isoquant is cost expansion path diagram
D. An Engel curve
3 in monopolistic competition the firms desire to sell more output at the equilibrium because.
A. Price is more than marginal cost
B. Price is less than marginal cost
C. Price is less than average cost
D. Price more than average cost
4 A firm's long run average total cost lineis
A. Identical to its long run marginal cost line
B. Also its long run supply curve
C. In fact the average total cost curve of the optimal plant
D. Tangent to all the curve of short run average total cost
5 Which of the following is correct with respect to the Paasche index.
A. The consumer Price index is an example of the Paasche index.
B. The Paasche index is biased upward
C. The Passche index always exceeds 1
D. The Paasche index uses given period quantities
6 A normal good can be defined as one which consumers purchase more of as.
A. Price fall
B. Price rise
C. Income fall
D. Incomes increase
7 Which of the following is correct for the demand and supply schedules given above.
A. The demand curve is non linear
B. The slope of the supply curve is 4
C. Equilibrium quantity is 40 units
D. The slope of the demand curve is 0.5
8 The average total cost of a wedge increases from Rs. 0.79 ro Rs. 0.83 Evidently
A. AFC exceeds AVC
B. MC is between Rs. 0.79 and Rs. 0.83
C. AVC is Rs. 0.83
D. MC is greater than Rs. 0.83
9 If a good has a lot of substitutes, then its demand is.
A. Elastic
B. Inelastic
C. Unit elastic
D. Elastic or inelastic depending on whether the price is increasing or decreasing
10 The ABC corporation.
A. Is earning a pure economic profit
B. Should produce zero units of output
C. Is sustaining an economic loss
D. Is breaking even

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