Question # 1

change in quantity demanded

Choose an answer

Downward shift of demand curve

Movement on the same demand curve

Downward shift

None of these

If a simultaneous and equal percentage decrease in the use of all physical inputs leads to a larger percentage decrease in physical output a firm's production function is said to exhibit.

Choose an answer

Decreasing returns to scale

Constant returns to scale

Increasing returns to scale

Diseconomies of scale

Firm A's annual profit is.

Choose an answer

Rs.10,000

Rs.20,000

Rs.30,000

Rs.60,000

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

Choose an answer

Fall

Double

Increase

Halve

An income demanded curve of an inferior good is.

Choose an answer

Same in slope

Upward is slope

Downward in slope

None of these

A Market situation where the number of buyers is very large and the number of sellers are very small is called.

Choose an answer

Perfect competition

Duopoly

Oligopoly

In perfect competition

A monopolist will maximize profit.

Choose an answer

Where total revenue is maximized

Where the slope of the total revenue function equals the slope of the total cost function

Where average cost is at a minimum

Where all the above are ture

In contract to perfectly competitive markets monopolists

Choose an answer

Do no have to worry about market demand

Sell only if demand is inelastic

Can never incur an economic loss

Can earn an economic profit indefinitely

Which of the following is a characteristics of monopolistic competition.

Choose an answer

One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product's quality price and marketing.

When firms are free to enter and exit the market

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

Choose an answer

D is preferred to C

B is preferred to D

There is indifference between C and D

There is indifference between B and D

As disposable income increases from Rs. 1500 to 2000 , saving increases from minus Rs. 50 to Rs.250 if the relationship between disposable income and saving is linear, the MPC obviously has a value of.

Choose an answer

.6

.8

.4

.2

A typical demand curve cannot be

Choose an answer

Rising upwards to the right

A straight line

Concave to origin

Convex to origin

According to Keynes, when the great depression started the government should be.

Choose an answer

Done nothing

Decreased the money supply

Had a large increase in government spending.

Enacted high tariffs such as the smoot Hawley tariff

Ti access internet services consumers must use a computer if computer prices fall, what is the effect on the demand for internet services.

Choose an answer

The demand for internet services increases.

The demand for internet services decreases

The demand for internet services does not change

The demand for internet services could increase, decrese, or stay the same depending on other factors.

In the long run a profit maximizing firm will choose to exit a market when

Choose an answer

Fixed costs exceed total costs

Total revenue from production is less than total costs

Average fixed cost is rising.

Marginal cost exceeds marginal revenue at the current level of production.

Firms entering a perfectly competitive market will cause the price of the product to

Choose an answer

Decrease

Increase

Remain constant

Respond more to consumer demand than supply

In perfect competition price is settled by

Choose an answer

Sellers

Buyers

Producers

Both a and b

Economists tend to disagree primarily about.

Choose an answer

The implications of scarcity for our economy

Which resources are free

Topics in positive economics

Issues of normative economics

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

Choose an answer

Marginal cost is at a minimum.

Average total cost is at a minimum

Average variable cost is at a minimum

Marginal and average

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

Choose an answer

The t test

The F -test

Chi square test

R

Which of the following taxes is regressive

Choose an answer

The federal income tax

The state income tax

The sales tax

The Medicare tax

More Classes

Other Links

PPSC Economics Chapter 2 Micro Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer