PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge. The higher price in market A The higher price in market B The same price in both markets There are many sellers
2 In marketing "USP " Stand for Unique selling proposition Underlying sales pitch Unit sales point Under sales procedure
3 If there is a price floor there will be. Shortages Surpluses Equilibrium All of these
4 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
5 Effective branding will tend to make Demand mover price inelastic Supply more price inelastic Demand more income elastic Supply more income elastic
6 Which of the following is not one of the four Ps in marketing. Product Price Place Presence
7 In monopolistic competition firms profit maximize where Marginal revenue = average revenue Marginal revenue= Marginal cost Marginal revenue= Average cost Marginal revenue = Total cost
8 In monopolistic competition Demand is perfectly elastic Products are homogeneous Marginal revenue = pirce The marginal revenue is below the demand curve and diverges
9 In cartels. Firms complete against each other Price wars are common Firms use price to win market share from competitors Firms collude
10 A model of game theory of oligopoly is known as the Prisoner's dilemma Monopoly cell Jailhouse sentence Jury box
11 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
12 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.
13 If a few firms dominate an industry the market is known as. Monopolistic competition Competitively monopolistic Duopoly Oligopoly
14 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
15 According to schumpater Monopolies are inefficient Monopoly profits act as an incentive for innovation Monopolies are allocatively efficient Monopolies are productively efficient
16 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.
17 The agricultural price support program is an example of. A price celling A price floor Equilibrium pricing None of these
18 Barriers to entry do not include Patents Internal economics of scale Mobility of resources High investment costs
19 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
20 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
21 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
22 For perfectly competitive firm Price equals marginal revenue Price is greater than marginal revenus Price equal total revenue Price equals total cost
23 In the long run in perfect competition Price = average= cost = marginal cost Price = average cost = total cost The price covers fixed cost total revenue = total variable cost
24 In the short run firm in perfect competition will still produce provided. The price covers average variable cost The price covers variable cost The price covers average fixed cost The price covers fixed cost
25 In the long run in perfect competitiion the price equals the total revenue Firm are allocatively inefficient Firms are productively efficient the price equals total cost
26 In perfect competition. the products firm offer are very similar Products are heavily differentiated A few firms dominate the market Consumers have limited information
27 A profit maximizing firm in perfect competition produces where Total revenue is maximized Marginal revenue equals zero Marginal revenue equals marginal cost Marginal revenue equals average cost
28 In perfect competation. The price equals the marginal revenue The price equals the average variable cost The fixed cost equals the variable costs The price equals the total costs
29 Firms in perfect competition face a Perfectly elastic demand curve Perfectly inelastic demand curve Perfectly elastic supply curve Perfectly inelastic supply curve
30 Price equal to. Total revenue -quantity Total revenue/quantity sold total quantity sold * quantity sold Total revenue/total cost
Download This Set

Is this page helpful?