(A) Intermediate microeconomics should be required of all economics majors in order to
build a solid foundation in economic theory.
(B) The minimum wage should not be increased, because to do so would increase
unemployment.
(C) Smoking should be restricted on all airline flights.
(D) None of the above.
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.
The magnitude of the slope of an indifference curve is:
(A) Called the marginal rate of substitution.
(B) Equal to the ratio of the total utility of the goods.
(C) Always equal to the ratio of the prices of the goods.
(D) All of the above.
A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called:
(A) A budget line.
(B) An isoquant.
(C) An indifference curve.
(D) A demand curve.
In the long run, new firms can enter an industry and so the supply elasticity tends to be:
(A) More elastic than in the short-run.
(B) Less elastic than in the short-run.
(C) Perfectly elastic.
(D) Perfectly inelastic.
The income elasticity of demand is the:
(A) Absolute change in quantity demanded resulting from a one-unit increase in
income.
(B) Percent change in quantity demanded resulting from the absolute increase in
income.
(C) Percent change in quantity demanded resulting from a one percent
increase in income.
(D) Percent change in income resulting from a one percent increase in quantity
demanded.
Assume that the current market price is below the market clearing level. We would expect:
(A) A surplus to accumulate.
(B) Downward pressure on the current market price.
(C) Upward pressure on the current market price.
(D) Lower production during the next time period.
Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another good?
(A) Price elasticity.
(B) Income elasticity.
(C) Cross-price elasticity.
(D) Cross-substitution elasticity.
Which of the following would shift the demand curve for new textbooks to the right?
(A) A fall in the price of paper used in publishing texts.
(B) A fall in the price of equivalent used text books.
(C) An increase in the number of students attending college.
(D) A fall in the price of new text books.