Question # 1

Friend man's theory of consumption focuses on

Choose an answer

Past income

Current income

Disposable income

Permanent income

The law of demand states that.

Choose an answer

As the quantity demanded rises, the price rises.

As the price rises the quantity demanded rises

As the price rises, the quantity demanded falls.

As supply rises, the demand rises.

A shift in supply will have a bigger effect on price than output if demand is.

Choose an answer

Income elastic

Income inelastic

Price elastic

Price inelastic

If marginal product is below average product.

Choose an answer

The total product will fall

The average product will fall

Average variable costs will fall

Total revenue will fall

The concept of "Interdependence of markets" can refer to the interdependence between.

Choose an answer

Two or more factor markets

Goods and factor markets

Goods markets

All of the above

An increase in costs will

Choose an answer

Shift aggregate demand

Shift aggregate supply

Reduce the natural rate of unemployment

Increases the productivity of employees

Injection are

Choose an answer

Assumed to be exogenous

Assumed to be a function of national income

Decrease aggregate demand

Decrease the investment into an economy

The standard of living is often measured by

Choose an answer

Real GDP per capita

Real GDP

Real GDP * Population

Real GDP Plus depreciation

An economy may operate outside the production possibility frontier it.

Choose an answer

It is not utilizing its resources fully

It is being productively efficient

It is a maxed economy

It is trading with other economics

The marginal rate of tax paid is.

Choose an answer

The total tax paid /total income

Total income/total tax paid

Change in the tax paid/change in income

Change in income/change in tax paid

An increase in the wage rate.

Choose an answer

Will usually lead to more people employed

Will decrease total earnings if the demand for labour is wage elastic

Is illegal in a free market

Will cause a shift in the demand for labour

Rapid increases in the price level during periods of recession or high unemployment are known as.

Choose an answer

Slump

Stagnation

Stagflation

Inflation

Human wants are

Choose an answer

Always fixed

Limited

Unlimited

Likely to decrease over time

Earning from primary products are often unstable because.

Choose an answer

Demand is price elastic

Supply is price elastic

Supply conditions are relatively stable

Supply conditions are unstable

A benefit to consumers of price discrimination is that

Choose an answer

Some products are produced that would not other wise be produced

Producer surplus increases

Consumer surplus decreases

Firms profits increase

A demand switching policy could be.

Choose an answer

Higher interest rates

Higher income tax

Traiffs

Reduced government spending

If marginal cost is positive and falling.

Choose an answer

Total cost is falling

Total cost is increasing at a falling rate

Total cost is falling at a falling rate

Total cost is increasing at an increasing rate.

Investment depend mainly on.

Choose an answer

Past levels of income

Future expected profits

Present national income levels

Historic data

In a recession, GDP.

Choose an answer

Grows negatively

Grows by 0%

Grows slowly

Grows rapidly

Why does it make sense in assume that people are rational, if you want to predict their behavior.

Choose an answer

People are not guided by emotions when making decisions

People wheo act in the way that best gets them what they want will tend to repeat that behavior, and will tend to learn from mistakes that they do make

People never make mistakes, and tend to make the correct choices all of the time

People always logically figure out what to do.

An increase in the costs of production will

Choose an answer

Shift demand out wards

Shift demand in wards

Shift supply out wards so more is supplied at each and every price all other things unchanged.

Shift supply inwards

More Classes

Other Links

PPSC Economics Chapter 1 Basic 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