economics MCQs – Page 452

Practise multiple-choice questions from economics for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

economics Mcqs
1. the national economy2. profit maximizing under perfect competition and monopoly3. application of economics4. the aggregate demand aggregate supply model5. surplus6. money interest rates and output7. average and total cost8. stabilization adjustment reform and privatization9. risks and diversification efficient market hypothesis10. the phillips curve11. supply and demand12. capital formation investment choice information technology and technical progress13. aggregate supply unemployment and inflation14. elasticity15. comparative gdp16. roots of modern macroeconomics17. production factors18. poverty malnutrition and income inequality19. trade regulations and industrial policies20. monetary union21. exchange rate systems and currency crises22. economic development in historical perspective23. exchange rate determination24. monopoly competition25. the balance of payments26. inflation productivity27. macroeconomic issues and analysis28. employment migration and urbanization29. macroeconomic policy tools30. supply side policies31. exchange rate adjustments and the balance of32. miscellaneous33. taxation34. trade policies for the developing nations35. markets efficiency and the public interest36. the external debt and financial crises37. budget deficits and the trade balance38. alternative theories of the firm39. public goods40. the meaning and measurement of economic development41. characteristics and institutions of developing countries42. agriculture irrigation system of pakistan43. education health and human capital44. economic problems of developing countries45. theories of economic development46. basic of economics47. consumer theory vs real consumers48. applied microeconomics49. long term economic growth50. externality internality51. fiscal and monetary policy52. prices wages taxes53. balance of payments aid and foreign investment54. international factor movements and multinational corporations55. entrepreneurship organization and innovation56. the international economy and globalization57. population and development58. non tariff trade barriers59. foundations of modern trade theory60. global economic development61. market62. rural poverty and agricultural transformation63. regional trading arrangements64. foreign exchange65. introduction to economics66. world economy miscellaneous67. sources of comparative advantage68. natural resources and the environment toward sustainable development69. monopoly70. asymmetric information71. income inequality72. labour market73. tariffs74. development planning and policy making the state and the market75. oligopoly76. industrial development77. costs supply and perfect competition78. human capital79. monetary fiscal and incomes policy and inflation80. stocks
9021. in long-run equilibrium in a competitive market, firms are operating at ?
comments icon0

A. zero economic profit

B. their efficient scale

C. intersection of marginal cost and marginal revenue

D. all of these answers are correct

E. the minimum of their average-total-cost curves

9022. The competitive firm maximize profit when it produces output up to the point where ?
comments icon0

A. price equals average variable cost

B. marginal cost equals total revenue

C. marginal cost equals marginal revenue

D. marginal revenue equals average revenue

9023. For a competitive firm, marginal revenue is ?
comments icon0

A. average revenue divided by the quantity sold

B. equal to the quantity of the good sold

C. equal to the price of the good sold

D. total revenue divided by the quantity sold

9024. In the long run, the competitive firms supply curve is the ?
comments icon0

A. portion of the marginal cost curve that lies above the average variable cost curve.

B. upward-sloping portion of the average total cost curve

C. upward-sloping portion of the average variable cost curve

D. entire marginal cost curve

E. portion of the marginal cost curve that lies above the average total cost curve
9025. In perfect competition ?
comments icon0

A. the price equals the average variable cost

B. The price equals the marginal revenue

C. the price equals the total cost

D. the fixed cost equals the variable costs

9026. In the short run, the competitive firms supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?
comments icon0

A. upward-sloping portion of the average variable cost curve

B. Upward-sloping portion of the average total cost curve

C. portion of the marginal-cost curve that lies above the average variable cost curve

D. entire marginal cost curve.

E. portion of the marginal cost curve that lies above the average total cost curve.

9027. A competitive firm demand curve is ?
comments icon0

A. vertical

B. elastic

C. downward sloping

D. Horizontal
9028. In monopolistic competition ?
comments icon0

A. Marginal revenue = price

B. Demand is perfectly elastic

C. The marginal revenue is below the demand curve and diverges

D. Products are homogeneous

9029. If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
comments icon0
A. Minimum efficient scale

B. Maximum efficient scale

C. Efficient scale

D. Average efficient scale

9030. In monopolistic competition firms profit maximize where ?
comments icon0
A. Marginal revenue = Average cost

B. Marginal revenue = Total cost

C. Marginal revenue = Marginal cost

D. Marginal revenue = Average revenue

9031. In monopolistic competition of firms are making abnormal profit other firms will enter and ?
comments icon0

A. The average cost will shift downwards

B. The average variable cost will increase

C. the demand curve will shift inwards

D. The marginal cost will shift outwards
9032. In Porters five force model conditions are more favorable for firms within an industry if ?
comments icon0

A. Buyer power is high

B. Entry threat is low

C. Substitute threat is high

D. Supplier power is high

9033. If a long run average cost curve is falling form left to right this is an example of ?
comments icon0

A. constant returns to scale

B. increasing returns to scale

C. decreasing returns to scale

D. the minimum efficient scale

9034. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
comments icon0
A. At their lowest points

B. When they are increasing

C. When they are declining

D. When marginal revenue is zero

9035. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
comments icon0
A. perfectly elastic

B. upward sloping

C. perfectly inelastic

D. downward sloping

9036. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
comments icon0

A. SMC below SAVC, LMC bellow LAC

B. SMC below SAVC, LMC above LAC

C. SMC, LMC

D. SMC above SAVC, LMC above LAC
9037. Effective branding will tend to make ?
comments icon0

A. Supply more price inelastic

B. Demand more income elastic

C. Demand more price inelastic

D. Supply more income elastic
9038. If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
comments icon0

A. an increase the price of the good and an increase in the number of firms in the market

B. no impact on either the price of the good or the number of firms in the market

C. an increase in the number of firms in the market but no increase in the price of the good

D. an increase the price of the good but no increase in the number of firms in the market

9039. In monopolistic competition ?
comments icon0

A. There are few buyers

B. There is one seller

C. There are few sellers

D. There are many sellers

9040. Short run average total costs are equals to the sum of ____ and _____?
comments icon0

A. Short run variable costs, profit

B. Short run average variable costs, profit

C. Short run average variable costs, profit run average fixed costs

D. Short run opportunity costs, profit