(A) An isoquant.
(B) A production possibility curve.
(C) A production function.
(D) An isocost function.
Category: Economics Mcqs
Users will find here Economics Mcqs for NTS, CSS, PMS, PPSC, FPSC, KPPSC, AJKPSC, BPSC, PTS, SPSC, Lecturer and all other types of Competitive Exams and Interviews. Economics students can prepare their Economics Portion for all test from here.
An individual with a constant marginal utility of income will be?
(A) Risk averse.
(B) Risk neutral.
(C) Risk loving.
(D) Insufficient information for a decision.
Which of the following is true regarding income along a price consumption curve?
(A) Income is decreasing.
(B) Income is decreasing.
(C) Income is constant.
(D) The level of income depends on the level of utility.
An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?
(A) MRSxy is at a maximum.
(B) Px/Py = money income.
(C) MRSxy = money income.
(D) MRSxy = Px/Py.
If prices and income in a two-good society double, what will happen to the budget line?
(A) The intercepts of the budget line will increase.
(B) The intercepts of the budget line will decrease.
(C) The slope of the budget line may either increase or decrease.
(D) There will be no effect on the budget line.
An increase in income, holding prices constant, can be represented as:
(A) A change in the slope of the budget line.
(B) A parallel outward shift in the budget line.
(C) An outward shift in the budget line with its slope becoming flatter.
(D) A parallel inward shift in the budget line.
The slope of an indifference curve reveals:
(A) That preferences are complete.
(B) The marginal rate of substitution of one good for another good.
(C) The ratio of market prices.
(D) That preferences are transitive.
A supply curve reveals:
(A) The quantity of output consumers are willing to purchase at each possible market price.
(B) The difference between quantity demanded and quantity supplied at each price.
(C) The maximum level of output an industry can produce, regardless of price.
(D) The quantity of output that producers are willing to produce and sell at each
possible market price.