PUBLIC SERVICE COMMISSION & OTHER TESTS INFORMATION IN PAKISTAN

PPSC, SPSC, BPSC, KPKPSC, AJKPSC, FPSC, NTS, ENTRY TESTS, EXAM HELP

Lecturer Professor Jobs Help 2016-17 CTI Jos Help 2016-17 AEO Jobs In Punjab SchoolsHelp Educator Jobs Help 2016-17 Headmaster Headmistress Jobs Help 2016

Tag: Economics MCQs

Economics MCQs

Economics MCQs

Economics MCQs

1. Which of the following is a characteristic of pure monopoly?
a. one seller of the product
b. low barriers to entry
c. close substitute products
d. perfect information2. In pure monopoly, what is the relation between the price and the marginal revenue?
a. the price is greater than the marginal revenue
b. the price is less than the marginal revenue
c. there is no relation
d. they are equal

3. In order to maximize profits, a monopoly company will produce that quantity at which the:
a. marginal revenue equals average total cost
b. price equals marginal revenue
c. marginal revenue equals marginal cost
d. total revenue equals total cost

4. Quantity Price Total Cost
1 $100 $ 60
2 95 130 
3 90 210
4 85 300
5 80 400

This monopolist should produce:
a. 1
b. 2
c. 3
d. 4
e. 5

5. Compared to the case of perfect competition, a monopolist is more likely to:
a. charge a higher price
b. produce a lower quantity of the product
c. make a greater amount of economic profit
d. all of the above

6. Which of the following is necessary for a natural monopoly?
a. economies of scale
b. a high proportion of the total cost is the cost of capital goods
c. the market is very small
d. all of the above

7. Which of the following is true about the way by which SDG&E has been regulated by the PUC?
a. SDG&E has been allowed to earn very high economic profits
b. The profits of SDG&E are calculated as a percent of the value of the capital goods
c. When the demand for electricity would fall, the price of electricity would also fall
d. All of the above

8. Which of the following best defines price discrimination?
a. charging different prices on the basis of race
b. charging different prices for goods with different costs of production
c. charging different prices based on cost-of-service differences
d. selling a certain product of given quality and cost per unit at different prices to different buyers

9. In order to practice price discrimination, which of the following is needed?
a. some degree of monopoly power
b. an ability to separate the market
c. an ability to prevent reselling
d. all of the above

10. In price discrimination, which section of the market is charged the higher price?
a. the section with the richest people
b. the section with the oldest people
c. the section with the most inelastic demand
d. the section with the most elastic demand

Answers: A A C C D D B D D C

1. Which of the following concepts represents the extra revenue a firm receives from the services of an additional unit of a factor of production?
a. total revenue
b. marginal physical product
c. marginal revenus product
d. marginal revenue2. Workers Quantity Produced
1 15
2 28
3 39
4 48
5 55
6 60

This company is a profit-maximizing firm selling in a competitive product market and hiring in a competitive labor market. It uses semi-skilled labor to produce dampers used in office building ventilation systems. Assume that the current market price per damper is $50 and that the prevailing weekly salary per semi-skilled worker is $550. This company should employ ______ workers.
a. 2
b. 3
c. 4
d. 5
e. 6

3. The demand for labor is the same as the
a. marginal revenue product
b. marginal physical product
c. marginal cost
d. wage

4. The demand for labor slopes down and to the right because of 
a. the law of demand
b. the iron law of wages
c. the law of diminishing marginal returns
d. economies of scale

5. The demand for labor will be more elastic if:
a. there are few substitutes for labor
b. there is a short time under consideration
c. labor is a large percent of the total cost of production
d. the demand for the product is relatively inelastic
e. all of the above

6. Skills that can be transferred to other employers are called:
a. general skills
b. specific skills
c. non-pecuniary skills
d. all of the above

7. Which skills are most likely to be paid for by the employer?
a. General skills
b. Specific skills
c. Educational skills

8. If worker A earns more in wages than worker B, it could be because:
a. The product made by worker A sells for a higher price than that made by worker B
b. Worker A uses more capital per worker than worker B
c. Worker A has more natural ability than worker B
d. All of the above

9. Skills that embodied in a person are called
a. Human capital
b. Embodied skills
c. Physical capital
d. Experience skills

10. “Treating an individual as typical of a group” is the definition of
a. pure discrimination
b. statistical discrimination
c. human capital
d. specific skills

Answers: C B A C C A B D A B

1. The largest source of tax revenue for the federal government is:
a. the personal income tax
b. the social security tax
c. the property tax
d. the sales tax2. When my income was $100,000, I paid $10,000 in taxes. When my income became $200,000, I paid $40,000 in taxes. My marginal tax rate is:
a. 10%
b. 20%
c. 30%
d. 40%

3. The tax is question #2 is:
a. progressive
b. regressive
c. proportional

4. Which of the following taxes is regressive?
a. the federal income tax
b. the state income tax
c. the sales tax
d. the Medicare tax

5. Assume that there are two goods, A and B. In 1996, Americans produced 10 units of A at a price of $10 and 20 units of B at a price of $20. In 2002, Americans produced 20 units of A at a price of $20 and 30 units of B at a price of $30. The Nominal GDP for 2002 is:
a. $100
b. $400
c. $500
d. $900
e. $1300

6. Using the numbers in question 5, the Real GDP for 2002 is:
a. $400 b. $500 c. $800 d. $900 e. $1,300

7. Which of the following statements is/are true?
a. Business Investment Spending occurs when individuals buy stock in the stock market
b. Productivity is the United States grew very slowly between 1973 and 1996
c. Because of discouraged workers, the official unemployment rate is too high
d. “Full employment” occurs when there is no frictional unemployment

8. Immediately after a trough, we would expect to have a/an
a. peak
b. recession
c. recovery
d. another trough

9. Last week, Martha spent one day cleaning a house. For this, she was paid $50. The rest of the week, she spent looking for a job. Martha would be classified as
a. employed
b. unemployed
c. not in the labor force10. John lost his accounting job when Montgomery Wards closed its stores in San Diego. He looked for a similar job for ten months before finding an accounting job at Sears. During the month John was unemployed, he was
a. frictionally unemployed
b. seasonally unemployed
c. cyclically unemployed
d. structurally unemployed

Answers: A C A C E C B C A D

1. Define average tax rate
Define marginal tax rate2. Define progressive tax
Define regressive tax
Define proportional tax

3. Define indexation

4. Define Nominal Gross Domestic Product (GDP)
Define Real Gross Domestic Product (GDP)

5. Define business investment spending

6. Briefly explain how the official unemployment rate is calculated.

7. Define frictional unemployment
Define cyclical unemployment
Define structural unemployment
Define “full employment”

Economics MCQs

PUBLIC SERVICE COMMISSION & OTHER TESTS INFORMATION IN PAKISTAN © 2016