PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 Law of variable proportion is also called. Law of non proportion returns Law of substitution Law of casts Law of demand
2 Labour has the following characteristics accept one. It cannot be separated form labourer It cannot be stored Its supply cannot be increase at once Bargaining power of laborer is very strong
3 When goods are compliments the cross demand curve Upward to the right Backward to bottom Inwards to the right Downwards to right
4 When the quantity demanded is changed on the same price the demand curve shifts upward The demand curve shifts downward Movement on the same demand curve None of these
5 A consumer is said to be in equilibrium when the marginla utility and price of a commodity More Less Irrelevant Equal
6 When due to change in price of commodity x demand of commodity y is charged it is called. Income elasticity Price elasticity More elastic Cross elasticity
7 The classical are of the view that utility can be. Ranked Counted Expressed in numbers Not counted
8 Elasticity of demand of luxurious goods is always more elastic More elastic Less elastic Equal elastic None elastic
9 In monopsony there is Single seller Two buyers Single buyer Few buyer
10 In monopoly there is. Single seller Single buyer Two producers Few seller
11 "Principles of economics" is the book of Robbins Adam smith Hicks Marshall
12 In substitution effect a consumer Shifts away from the commodity which price has risen shifts in favor of commodity which price has risen shifts away from the commodity which price has fallen None of these
13 In capitalistic economy price is determined by Supply and production Demand and production Demand and consumption Demand and supply
14 Law of demand is not applicable on Daily goods Scarce goods Consumer goods Producer goods
15 A demand curve shows that relation between price and demand. Positive Negative Zero Very strong
16 Indifference curve theory is old wine in new labeled bottle is said by. Marshall Griffin Ricardo Allen
17 "The quantity demanded increases as its price increases and falls as its price falls" is called given goods, is presented by. Allen Marshall Adam smith Robert griffin
18 An indifference curve shows various combinations to goods Which gives the consumer. Equal level of utility Low level of utility High level of utility None of these
19 Indifference curve approach is also called. Law of diminishing marginal utility Law of substitution Ordinal measure approach None of these
20 Foundation of law of demand is. Law of diminishing marginal utility Law of substitution Law of increasing return to scale Law of diminishing marginal rate of substitution.
21 Indifference curve is alwyas. Vertical Horizontal Concave Convex
22 Law of variable proportion sis applicable in. Short run Long run Anytime Fore ever
23 Micro economics is the study of. Economy on the whole Large units of the economy Individual units of the economy General economics
24 Goods which can be consume directly are Producer goods Consumer goods Free goods Economics goods
25 Indifference curve has following characteristics except. Convex to origin Intersect each other Not necessary to be parallel None of these
26 Cardinal approach theory was presented by Marshall Adam smith Robbins Hicks
27 If the prices of both goods increase by the same percent the budget line will Shift parallel to the left shift parallel to the right Pivot about the x axis Pivot abut the Y axis
28 Which of the following is a characteristic of monopolistic competition. One seller serving the entire market When each firm sells an identical product When firms do not compete on a product quality price and marketing When firms are free is enter and exit the market
29 As long as all prices remain constant an increase in money income results in. An increase in the slope of the budget line A decrease in the slope of the budget line An increase in the intercept of the budget line. a decrease in the intercept of the budget line.
30 As long as the principle of diminishing marginal utility is operating any increased consumption of a good. Lowers total utility Produces negative total utility Lowers marginal utility and therefore total utility Lowers marginal utility, but may raise total utility.
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