Question # 1

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

Which of the following does not characterize monopolistic competition.

Choose an answer

Product differentiation

Many producers

Absence of advertising

Some control over price

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

Elasticity of demand of luxurious goods is always more elastic

Choose an answer

More elastic

Less elastic

Equal elastic

None elastic

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

Choose an answer

The equilibrium price

The use of substitutes

The equilibrium quantity

All of the above

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

In the short run a competitive firm's supply curve is.

Choose an answer

Its average variable cost cure to the right of the marginal cost curve.

Its marginal cost curve above the average variable cost curve.

It marginal cost curves above its average cost curve.

The horizontal summation of the marginal cost curves

Which of the following shifts the demand curve for hot dogs leftward.

Choose an answer

An increase in the price of a hot dog bun

A decreases in the price of a hot dog bun

An increased in the price of a hamburger

An increases in the price of a hot dog

When a tax is levied on a good.

Choose an answer

The market price falls because demand declines.

The market price falls because supply falls.

A wedge is placed between the price buyers pay and the price sellers receive

The market price rises because demand falls.

If leisure is an inferior good the individuals supply curve for labor is.

Choose an answer

Back ward bending

Completely inelastic

Upward sloping

Perfectly elastic

In an industry with a falling long term supply curve, which of the following is true.

Choose an answer

Industry unit cost are constant

Industry unit costs are decreasing

Industry unit costs are increasing

Industry unit costs cannot be determined

MC = MR= AR=AC = Price shows the longs run

Choose an answer

Monopolist firm

Oligopolistic firm

Competitive firm

Both a and b

What is the per unit marginal cost of increasing production from 20 to 25 units.

Choose an answer

Rs. 3,500

Rs.100

Rs.4,000

Rs.500

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

When the demand curve is vertical its shows that the demand is.

Choose an answer

Less elastic

Very high elastic

Elastic

Perfectly inelastic

A consumer is said to be in equilibrium when the marginla utility and price of a commodity

Choose an answer

More

Less

Irrelevant

Equal

In the short run no firm operates with a loss unless

Choose an answer

Variable cost equals fixed cost

Variable cost falls short of fixed cost

Total revenue covers variable costs

Total revenue covers fixed cost

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

If the prices of both goods increase by the same percent the budget line will

Choose an answer

Shift parallel to the left

shift parallel to the right

Pivot about the x axis

Pivot abut the Y axis

When the marginal physical product of labor is 800 - 2N , the price of goods is Rs. 2, and the cost of labor is Rs. 4 per unit, the quantity of labor employed is.

Choose an answer

20 Units

800 Units

399 Units

80 units

Indifference curve is alwyas.

Choose an answer

Vertical

Horizontal

Concave

Convex

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