Question # 1

Price discrimination is possible

Choose an answer

Oligopoly

Duopoly

Perfect competition

Monopoly

Projects A,B,C,D,E cost Rs. 100, Rs, 200, Rs. 300, Rs. 400, and Rs. 500 with MEC's of 0.07, 0.06,0.09 ,0.10 and 0.11 respectively. The market rate of interest is 8% Total investment spending is

Choose an answer

Rs. 1500

Rs.1300

Rs.1200

Rs.300

The epigram "time is money" expresses , in part, the concept of.

Choose an answer

Opportunity cost

Comparative advantage

Specialization

Efficiency in production

An economy that falls to realize all of its p9otential gains from specialization is.

Choose an answer

Achieving productive efficiency

Operating outside its production possibilities curve

Operating on its production possibilities curve in an inefficient manner

Operating inside its production possibility curve

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

Choose an answer

Not applicable

Another explanation of economies of scale

A principle of scales

None of these

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 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 groups is most hurt by unexpected inflation.

Choose an answer

Workers with cost of living adjustments in their labor contracts

Home owners

People with large debts to pay for their homes and cars

People with large retirement savings held in savings accounts.

Indifference curve theory is old wine in new labeled bottle is said by.

Choose an answer

Marshall

Griffin

Ricardo

Allen

In monopoly there is.

Choose an answer

Single seller

Single buyer

Two producers

Few seller

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

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 monopolist will discontinue production if

Choose an answer

Marginal revenue is less than marginal cost

Marginal revenue is less than average total cost

Marginal revenue is less the average fixed cost

Price is less than average variable cost

Micro economics is the study of.

Choose an answer

Economy on the whole

Large units of the economy

Individual units of the economy

General economics

If a good has a lot of substitutes, then its demand is.

Choose an answer

Elastic

Inelastic

Unit elastic

Elastic or inelastic depending on whether the price is increasing or decreasing

If the price elasticity of demand for a non giffen good is inelastic are decreased in its price result in.

Choose an answer

Increase in demand

Decrease in demand

Increase in total revenue

Decrease in total revenue

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

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market we have.

Choose an answer

A cartel

The perfect competitive outcome

The Nash equilibrium

Monopolistic competition

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

Choose an answer

More of a good the higher their incomes, ceteris paribus.

Less of good the higher its price ceteris paribus

Buy more of a good the less is its supply ceteris paribus

Buy less of a good the greater is its supply ceteris paribus

in monopolistic competition the firms desire to sell more output at the equilibrium because.

Choose an answer

Price is more than marginal cost

Price is less than marginal cost

Price is less than average cost

Price more than average cost

If A, B, C and D are any four market baskets, and if the consumer has ranked them so that D is preferred to C, A is hot preferred to B, and B is not preferred to c then.

Choose an answer

A is preferred to C

A is preferred to D

B is preferred to D

D is preferred to A

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