Question # 1

When goods are compliments the cross demand curve

Choose an answer

Upward to the right

Backward to bottom

Inwards to the right

Downwards to right

Skills that embodied in a person are called.

Choose an answer

Human capital

Embodied skills

Physical capital

Experience skills

Given the above demand and supply equations for widgets, the equilibrium price and quantity is.

Choose an answer

P = Rs. 20, Q = 60

PO = Rs. 60, Q, = 20

P Rs. 35, Q = 45

P - Rs. 12, Q = 88

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

Choose an answer

The competitive rate of return on capital

Temporary monopoly profit

Rent

A Ramsey surplus

The same graph shows that the firm order to maximize profits , should produce.

Choose an answer

30 units charges a price of Rs. 16

20 Units and charge a price of Rs. 22

35 Units and charge a price of Rs. 12

38 units and charge a price or Rs. 10

Which of the following does not apply to pareto efficiency.

Choose an answer

Consumptive efficiency

Productional efficiency

Allocative efficiency

Equity

The key feature of oligopoly is.

Choose an answer

Excess capacity

High profitability

Product differentiation

Interdependence of firms

For a competitive firm the demand curve

Choose an answer

A horizontal

Coincides with the marginal revenue curve

Coincides with the average revenue curve

All of the above

The short term interest rates on bonds over the next 5 years is 6% , 7%, 9% ,10% and 8% according to the expectations Hypothesis, the interest rates on bonds with 5 years to maturity will be.

Choose an answer

6%

8%

10%

9%

Suppose that the price elasticity of demand for maple syrup has been estimated at-2 if quantity demanded increased by 10 precent, price must have changed by.

Choose an answer

5 percent lower

5 percent higher

10 percent lower

10 percent higher

Skills that can be transferred to other employers are called.

Choose an answer

General skills

Specific skills

Non pecuniary skills

All of the above

A normal good can be defined as one which consumers purchase more of as.

Choose an answer

Price fall

Price rise

Income fall

Incomes increase

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

Choose an answer

Downward sloping

Upward sloping

Perfectly elastic

Completely inelastic

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

Choose an answer

Free entry and exit

Many small sellers and buyers

Perfect information

Short run

If a monopolist's demand curve is downward sloping and linear, then its total revenue curve must be.

Choose an answer

Identical to the demand curve

A ray from the origin with a slope equal to price

negative sloped with twice the slope of the demand curve

A rising function of output that increases at a decreasing rate , reaches a maximum, then falls.

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.

If the demand curve for a good is downward sloping then the good must be.

Choose an answer

Normal

Inferior

Giffen

Either a or b

The elasticity of demand for cigarettes by a non smoker is.

Choose an answer

Unitary price elastic

Relatively price elastic

Perfectly price elastic

Perfectly price inelastic

Cardinal approach theory was presented by

Choose an answer

Marshall

Adam smith

Robbins

Hicks

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

Choose an answer

Total cost

Total production

Plant size

None of these

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

Choose an answer

Vertically

Horizontally

In parallel

Any of the above as long as it is consistent

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