PPSC Economics Chapter 11 Assess Your Basics With Answers

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PPSC Economics Chapter 11 Assess Your Basics

Sr. # Questions Answers Choice
1 The opportunity cost of acquiring education is. Course fees Course fees and living expenses The earning foregone Course fees, living expenses and textbooks
2 Skilled labour is relatively scarce because. There are too few teachers Too few student places in higher education It is costly to acquire human capital Teachers salaries are too low
3 The most important source of wage differentiate are. Reginal variation Unionization Relative danger Skills
4 Human capital can be described as. The tools used by workers to entrances productivity a persons inherited abilities. The stock of expertise accumulated by a worker Education
5 Top footballers land to earn more than lecturers because. Footballers give more entertainment Lecturers are lazy The labour markets are imperfect Top footballers are relatively scarce in relation to lecturers
6 The participation rate in the labour force is affected by Higher real wages Lower fixed costs of working Lower non labor income All of the above
7 A profit maximizing firm will hire labor until _______ equal the Marginal revenue, marginal cost Long run marginal revenue, long run marginal cost Labour output ratio, capital output ratio Marginal cost of labour, marginal revenue product
8 A dominant strategy is. A winning strategy A losing strategy A players best strategy when moving fist a player's best strategy whatever the strategies adopted by rivals
9 In Nash equilibrium each player chooses the best strategy. Assuming other players move first. Dominated by the other players Given the strategies of other players That is a credible threat
10 The prisoners Dilemma Game demonstrates that. Players are better off to act independently Monopoly is better than competition People will always cheat Players are better off if they con operate
11 When a market is contestable , incumbent firms must.________ to avoid the entry of new competitors. Behave like competitive firms Agree to act together Differentiate their products Practice price discrimination
12 A natural monopoly has a declining ________ over a large range of output. Long run marginal cost Short run marginal cost Long run average cost Long run marginal cost
13 All of the following are types of imperfect competition except Monopolistic competition Oligopoly Monopoly Unfair competition
14 A monopoly may be self perpetuating because profits may be used for research Cost saving Technical advance All of the above
15 Perfect price discrimination means that every customer. Buys the same amount Pays the same price Pays what she thinks the product is worth Contributes the same revenue.
16 Comparing a monopoly and a competitive firm the monopolist will. Produce less at a lower price Produce more at a lower price Produce less at a higher price Produce less at a lower price
17 A competitive firm produces a level of output at which. Price is greater than marginal cost Price equals marginal cost Price is less than marginal cost None of the above
18 A competitive firms demand curve is. Horizontal Vertical Down ward sloping Fairly elastic
19 For perfect competition ot work there must be Many buyers and sellers A standard product Free entry and exit All of the above
20 For a competitive firm its short run supply curve is ________ and its long run supply curve is. SMC , LMC SMC above SAVC, LMC above LAC SMC below SAVC, LMC above LAC SMC Below SAVC, LMC below LAC
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