(A) Price
(B) Income levels
(C) Objectives of the firm
(D) Level of technology
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.
A rational decision maker will take only those actions for which the marginal benefit:
(A) Is positive.
(B) Is at its maximum level.
(C) Is less than marginal cost.
(D) Is greater than or equal to the expected marginal cost.
According to law of demand, a demand curve is:
(A) Horizontal
(B) Vertical
(C) Downward sloping
(D) Directly related to law of supply
A firm produces chairs. An economist working for the firm predicts that ‘if people’s incomes rise next year, then the demand for our chairs will increase, ceteris paribus.’ The accuracy of the economist’s prediction depends on whether the chairs that firm produces:
(A) Have many complementary goods.
(B) Have few substitutes.
(C) Have few complementary goods.
(D) Are normal goods.
In a free-market economy the allocation of resources is determined by:
(A) votes taken by consumers
(B) a central planning authority
(C) Consumer preferences
(D) the level of profits of firms
Periods of less than full employment correspond to:
(A) Points outside the ppf.(production possibility frontier).
(B) Points inside the ppf.
(C) Points on the ppf.
(D) Either points inside or outside the ppf.
Opportunity cost is:
(A) That which we forego, or give up, when we make a choice or a decision.
(B) A cost that cannot be avoided, regardless of what is done in the future.
(C) The additional cost of producing an additional unit of output.
(D) The additional cost of buying an additional unit of a product.
The study of economics is primarily concerned with:
(A) Demonstrating that capitalistic economies are superior to socialistic economies.
(B) Determining the most equitable distribution of society’s output.
(C) Keeping private businesses from losing money.
(D) Choices which are made in seeking to use scarce resources efficiently.