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

Suppose an individual spends all his income on only two goods, good X and good Y moreover suppose that you were asked to derive his price consumption curve for good Y Which of the following would be allowed to very.

Question # 2

The law of diminishing marginal returns to a factor of production is.

Question # 3

A monopsony is

Question # 4

A market demand curve can be derived by adding all the individual demand curves

Question # 5

At level of income and output of 100 in the diagram above

Question # 6

The method most commonly used to test the overall significance of a regression is.

Question # 7

In Production of goods and services tradeoffs exist becasue.

Question # 8

Which of the following does not represent a barrier to entry into a market.

Question # 9

If the price of an apple increases.

Question # 10

An oligopolistic industry can be characterized by all of the following except

Question # 11

Finance minister tax a commodity

Question # 12

In monopolistic competition, firms desire to sell more output at equilibrium because.

Question # 13

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

Question # 14

If A is preferred to B and B is preferred to C and there is indifference between A and D

Question # 15

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

Question # 16

When the price of a pizza decreased from 1200 Rupees to 1000 Rupees, it is definitely the case that the.

Question # 17

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 # 18

Holding all other things constant a higher price for ski lift tickets would.

Question # 19

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

Question # 20

What is the per unit marginal cost of increasing production from 20 to 25 units.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 The downward kinked demand curve facing the individual oligopolistic implies that
A. He face price certainlty
B. Competitors have a tendency to follow price decreases but not price increase
C. Total revenue remains same if a firm increases price
D. None of these
2 A price cross elasticity of 0.81 between X and Y shows that.
A. They are complementary goods
B. They are competitive substitutes
C. They are not substitutes
D. a reduction in the price of one would cause an increase in the consumption of the other.
3 Holding all other things constant a higher price for ski lift tickets would.
A. Increase the number of skiers
B. Increase the price of skis
C. Decrease the number of skis sold
D. Decrease the demand for other winter recreational activities
4 Which of the following groups is most hurt by unexpected inflation.
A. Workers with cost of living adjustments in their labor contracts
B. Home owners
C. People with large debts to pay for their homes and cars
D. People with large retirement savings held in savings accounts.
5 When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market we have.
A. A cartel
B. The perfect competitive outcome
C. The Nash equilibrium
D. Monopolistic competition
6 In monopolistic competition, firms desire to sell more output at equilibrium because.
A. Price is greater than average cost
B. Price is greater than average variable cost
C. Price is greater than marginal cost
D. Price is equal to marginal revenue
7 A utility contour shows all the alternative combinations of two consumption goods that.
A. Can be produced with a given set of resources and technology
B. Yield the same total of utility
C. Can be purchased with a given budget at given prices
D. Equate the marginal utilities of these goods and therefore make the consumer indifferent between them.
8 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.
A. 70
B. 95
C. 700
D. 800
9 The same graph shows that the firm order to maximize profits , should produce.
A. 30 units charges a price of Rs. 16
B. 20 Units and charge a price of Rs. 22
C. 35 Units and charge a price of Rs. 12
D. 38 units and charge a price or Rs. 10
10 In the short run if price falls the firm will respond by
A. Shutting down
B. Equating average variable cost to marginal revenue
C. Reducing output along its marginal cost curve as long as marginal revenue exceed average variable cost
D. None of the above

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