Question # 1

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

The marginal rate of substitution of two goods can be obtain from

Choose an answer

Slope of budget line

Slope of demand curve

Slope of indifference curve

None of these

The demand curve for labor for a monopolist when other inputs are fixed is equal to its

Choose an answer

Marginal value product curve

Marginal revenue product curve

Horizontal summation of the firms demand curve at different output prices

Marginal physical product curve

The demand curve of unitary elastic commodity is.

Choose an answer

Rectangular hyperbola

Parabola

Straight line

None of these

In perfect competition the industry will be in equilibrium.

Choose an answer

when all the firms earning abnormal profit

When all the firms earning normal profit

All firms having loss

All firms having proft

Labour has the following characteristics accept one.

Choose an answer

It cannot be separated form labourer

It cannot be stored

Its supply cannot be increase at once

Bargaining power of laborer is very strong

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

Firm A's margin of safety is.

Choose an answer

0.10

0.40

0.20

0.30

A demand curve shows that relation between price and demand.

Choose an answer

Positive

Negative

Zero

Very strong

A monopoly there is

Choose an answer

No difference between firm and industry

A few firms

Lot of firms

none of these

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

Assume a cosumer buys 25 units of good X at Rs.8 and 10 units of good Y at Rs. 6 in 1980. If Px = Rs. 6 and Py = Rs. 4 in 1970 the pasasche index is.

Choose an answer

1.14

1.65

1.37

1.47

Law of variable proportion sis applicable in.

Choose an answer

Short run

Long run

Anytime

Fore ever

Which of the following would cause the demand curve for an input to shift.

Choose an answer

A change in technology

A change in demand for the product being produced

An increase in the number of firms in the industry

All of the above

Which of the following explains why demand curves slope downward.

Choose an answer

Prices and income

substitutes and complements

Resources and technology

Substitution effect and income effect

The price elasticity of demand is teh same thing as the negative of the

Choose an answer

Slope

Reciprocal of slope

The first derivative of the demand function

Reciprocal of slope times the ratio of price to quantity

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 the discount rate at the FED generally has the following effect on bond prices.

Choose an answer

There is no demonstrated effect

Such an increase tends to lower bond prices.

Such an increase tends to raise bond prices

Bond prices are related to the government purchase and sale of bonds.

An indifference curve shows various combinations to goods Which gives the consumer.

Choose an answer

Equal level of utility

Low level of utility

High level of utility

None of these

The average total cost when 20 units of output are produced is

Choose an answer

Rs. 2,900

Rs.195

Rs. 20

Rs.900

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

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