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

  • Time Allowed20

PPSC Economics Topic 2 Micro Economics

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Question # 1

If a good is normal then the demand curve for that good must be.

Question # 2

Oligopoly is a market structure in which

Question # 3

A demand curve that is an equilateral hyperbola is.

Question # 4

The most important determinant of price elasticity is.

Question # 5

If the price of both goods increase by the same percent , the budget line will.

Question # 6

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

Question # 7

If a price floor of Rs.15 is imposed, the governments cost is.

Question # 8

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 # 9

Along the long run supply curve all of the following can vary except.

Question # 10

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

Question # 11

In monopoly there is.

Question # 12

Skills that embodied in a person are called.

Question # 13

The "Law of demand" most directly means that consumers buy

Question # 14

Which of the following correct about firms in an oligopoly.

Question # 15

Short run is a time frame where a firm can change its.,

Question # 16

An indifference curve shows various combinations to goods Which gives the consumer.

Question # 17

One of the following has more elastic demand.

Question # 18

Indifference curve is alwyas.

Question # 19

the ouput where diminishing return to production begin is also the ouput where

Question # 20

In order to constitute an oligopolistic market structure.

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PPSC Economics Chapter 2 Important MCQ's

Sr.# Question Answer
1 In pure monopoly there is.
A. A lot of firms
B. Two firms
C. A single firm
D. Many firms
2 A profit maximizing monopolist in two separate markets will
A. Charge different price according to elasticity
B. Charged same price
C. Charged very high price
D. Charged very low price
3 If the government lower taxes by $10 billion, the Real GDP will rise by
A. More than $10 billion
B. Less than $10 billion
C. Exactly $10 billion
D. None of these
4 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.
5 A price decrease and an increase in income are similar in that
A. Both force the consumer to achieve a lower level of well being
B. Both force the consumer to reach a lower indifference curve
C. Both move the budget line outward
D. They are not similar at all
6 Which of the following does not characterize monopolistic competition.
A. Product differentiation
B. Many producers
C. Absence of advertising
D. Some control over price
7 If the price of both goods increase by the same percent , the budget line will.
A. shift parallel to the left
B. Shift parallel to the right
C. Pivot about the x axis
D. Pivot about the Y axis
8 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
9 Economists tend to disagree primarily about.
A. The implications of scarcity for our economy
B. Which resources are free
C. Topics in positive economics
D. Issues of normative economics
10 The key feature of oligopoly is.
A. Excess capacity
B. High profitability
C. Product differentiation
D. Interdependence of firms

Test Questions