Question # 1

A firm's long run average total cost lineis

Choose an answer

Identical to its long run marginal cost line

Also its long run supply curve

In fact the average total cost curve of the optimal plant

Tangent to all the curve of short run average total cost

An increase in price causes an increase in total revenue when.

Choose an answer

Demand is elastic

Demand is inelastic

Demand is unit elastic

All of the above are possible

If there are 50 firms in a industry each selling 2% of the total sales the concentration ratio is.

Choose an answer

50%

2%

8%

100%

Price elasticity at a given price is not affected by.

Choose an answer

The price of complements

The price of substitutes

The consumer's income

A change in supply

In a perfectly competitive market if firms are earning an economic profit the economic profit.

Choose an answer

Attracts entry by more firms, which lowers the market price

Can be earned both in the short run and long run

Is less than the normal profit

Leads to a decreases in market demand

A firm's total revenue is Rs. 4,500 when it sells 15 pairs of boots compared to Rs. 4,480 when it sells 14 pairs,. The marginal revenue of the 15th pair of boots is.

Choose an answer

Rs.20

Rs.320

Rs. 4,480

Rs.300

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

In order to practice price discrimination which of the following is needed.

Choose an answer

Some degree of monopoly power

An ability to separate the market

An ability to prevent reselling

All of the above

A typical demand curve cannot be

Choose an answer

Rising upwards to the right

A straight line

Concave to origin

Convex to origin

If there is no price surprise, total output is.

Choose an answer

50

150

400

200

Goods which can be consume directly are

Choose an answer

Producer goods

Consumer goods

Free goods

Economics goods

The long run is a time period that is.

Choose an answer

Five years or longer

Long enough to change the level of labor hired

Long enough to change the size of the firm's plant

Ten years or longer

In monopsony there is

Choose an answer

Single seller

Two buyers

Single buyer

Few buyer

A demand curve that is an equilateral hyperbola is.

Choose an answer

Perfectly elastic

Relatively elastic

Unit elastic

Relatively inelastic

If a monopolist's has only fixed costs and chooses that output at which marginal cost equals price. it will

Choose an answer

Earn positive economic profits

Earn zero economic profits

Incur a loss equal to its variable costs

Incur a loss equal to its fixed costs

Which of the following does not apply to pareto efficiency.

Choose an answer

Consumptive efficiency

Productional efficiency

Allocative efficiency

Equity

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

Choose an answer

Segment able markets

Difference in price elasticity of demand among the segments

The inability of customers to transfer products

All of the above

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 fundamental reason people must choose which goods to buy and consume is because of.

Choose an answer

Scarcity

Specialization

People engaging in exchange

The fact there are many different economic agents

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

Choose an answer

Opportunity cost

Comparative advantage

Specialization

Efficiency in production

If Supply and demand both decrease simultaneously. Which of the following will happen.

Choose an answer

Price will rise

Quantity sold will rise

Price will fall

Quantity sold will decrease

The demand for labor slopes down and to the right because of.

Choose an answer

The law of demand

The iron law of wages

The law of diminishing marginal returns

Economies of scale

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 capitalistic economy price is determined by

Choose an answer

Supply and production

Demand and production

Demand and consumption

Demand and supply

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

Choose an answer

APC < 1

Equilibrium occurs

Consumption expenditures are equal to 100

MPC > APC

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer