PPSC Economics Chapter 1 Basic Economics With Answers

image
image
image

PPSC Economics Chapter 1 Basic Economics

Sr. # Questions Answers Choice
1 If there is a price floor there will be. Shortages Surpluses Equilibrium All of these
2 In monopolistic competition if firms are making abnormal profit other firms will enter and The marginal cost will shift outwards the demand curve will shift inwards The average cost will shift downwards The average variable cost will increase
3 Effective branding will tend to make Demand mover price inelastic Supply more price inelastic Demand more income elastic Supply more income elastic
4 Which of the following is not one of the four Ps in marketing. Product Price Place Presence
5 In monopolistic competition firms profit maximize where Marginal revenue = average revenue Marginal revenue= Marginal cost Marginal revenue= Average cost Marginal revenue = Total cost
6 In monopolistic competition Demand is perfectly elastic Products are homogeneous Marginal revenue = pirce The marginal revenue is below the demand curve and diverges
7 In cartels. Firms complete against each other Price wars are common Firms use price to win market share from competitors Firms collude
8 A model of game theory of oligopoly is known as the Prisoner's dilemma Monopoly cell Jailhouse sentence Jury box
9 Firm in oligopoly are likely to. Invest heavily in branding Act independently of other firms Try to differentiate its products Try to be a price maker
10 Game theory Firm are assumed to act independently Firms are assumed to cooperate with each other Firm collude as part of a cartel Firms consider the actions of others before deciding what to do.
11 If a few firms dominate an industry the market is known as. Monopolistic competition Competitively monopolistic Duopoly Oligopoly
12 A welfare less occurs in monopoly where The price in greater than the marginal cost The price is greater than the marginal benefit The price is greater than the average revenue Has the right to investigate monopolies and will assess each one on its own mertis
13 According to schumpater Monopolies are inefficient Monopoly profits act as an incentive for innovation Monopolies are allocatively efficient Monopolies are productively efficient
14 In monopoly which of the following is true. There are many buyers and sellers There is one main buyers There is one main seller The actions of one firm do not affect the market price and quantity.
15 The agricultural price support program is an example of. A price celling A price floor Equilibrium pricing None of these
16 Barriers to entry do not include Patents Internal economics of scale Mobility of resources High investment costs
17 In monopoly in long run equilibrium. The firm is productively effieient The firm is allocatively inefficient The firm produces where marginal cost is less than marginal revenue The firm produces at the sociality optimal level
18 In monopoly when abnormal profits are made. The prize set is greater than the marginal cost The price is less than the average cost The average revenue equals the marginal cost Revenue wquals total cost
19 The marginal revenue curve in monopoly Equals the demand curve Is a parallel with the demand curve Lies below and converges with the demand curve Lies below and diverges from the demeaned curve
20 For perfectly competitive firm Price equals marginal revenue Price is greater than marginal revenus Price equal total revenue Price equals total cost
Download This Set

Is this page helpful?

×