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PPSC Economics Chapter 6 Economics Model MCQs With Answers
Question # 1
Equilibrium is defined as a situation in which.
Choose an answer
Neither buyers nor sellers want to change their behavior
No government regulations exist
Demand curves are perfectly horizontal
suppliers will supply and amount that buyers wish to buy
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Question # 2
Consumers and firms are known as price takers only it
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No market exists to determine the equilibrium price
they can set the market price
They cannot effect the market price
Excess demand exists
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Question # 3
In the labor market if the government imposes a minimum wage that is below the equilibrium wage then.
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Workers who wish to work at the minimum wage will have a difficult time finding jobs.
Firms will hire fewer workers than without the minimum wage law.
Some workers may lose their jobs as a result
Nothing will happen to the wage rate or employment
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Question # 4
Most Microeconomic models assume that decision makers wish to.
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Make themselves as well off as possible
Act selfishly
Not cooperate with others
None of the above
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Question # 5
A competitive equilibrium is described by
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A price only
A quantity only
The excess supply minus the exceess demand.
A price and a quantity
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Question # 6
If the price of automobiles were to decrease substantially the demand curve for public transpiration would most likely.
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shift rightward
Shift leftward
Remain unchanged
Remain unchanged while quantity demanded would change
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Question # 7
To determine the total demand for all consumers sum the quantity each consumer demands.
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At a given price
At all prices and then sum this amount across all consumers
Both a and b will generate the same total demand
None of the above
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Question # 8
A vertical demand curve for a particular good implies that consumers are.
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Sensitive to changes in the price of that good
Not sensitive to changes in the price of that good.
Irrational
Not interested in that good
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Question # 9
An increases in the demand curve for orange juice would be illustrated as a.
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Leftward shift of the demand curve
Right ward shift of the demand curve
Movement up along the demand curve
Movement down along the demand curve
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Question # 10
As the price of a good increases, the change in the quantity demanded can be shown by
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Shifting the demand curve leftward
Shifting the demand curve rightward
Moving down along the same demand curve
Moving up long the same demand curve
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Question # 11
Which of the following is an example of a normative statement.
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Since this good is bad for you, you should not consume it.
this good is bad for you
If you consume this good you will get sick
People usually get sick after consuming this good
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