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Economics Mcqs 4423 MCQs [All-Courses]

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Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

All Topics  4423

Fear to take-overs will lead firms to maximize ?
A growth.
B sales revenue
C managers utility
D profits.
Correct Answer: profits.
The merger of a clothing firm and a software producer would be a _______ merger?
A horizontal
B vertical
C conglomerate
D homogeneous
Correct Answer: conglomerate
Growth maximization is the same as ?
A sales revenue maximization
B maximization the growth of sales revenue.
C Sales maximization
D long-run profit maximization.
Correct Answer: maximization the growth of sales revenue.
A sale maximizing firm will produce where ?
A AR minus AC is maximized
B MC = MR
C quantity sold is maximized
D sales revenue is maximized
Correct Answer: sales revenue is maximized
The divorce of owner ship and control causes a problem usually referred to by economists as ?
A profit myopia
B principal-agent problem.
C merger mania.
D moral hazard
Correct Answer: principal-agent problem.
Williamson suggests that managers might NOT try to achieve ?
A respect of other managers.
B maximum profits.
C job security
D a large number of subordinates
Correct Answer: maximum profits.
A firm may be unable to maximize profits because it ?
A does not know its MC and MR
B has too much information
C has too little information
D The first and third option
Correct Answer: The first and third option
The divorce of ownership and control tends to occur in ?
A sole proprietors
B partnerships
C public limited companies
D monopolies
Correct Answer: public limited companies
Public limited companies may not maximize their profits because ?
A they are afraid of encouraging takeovers.
B shareholders have little control over managers.
C shareholders want higher dividends.
D both the first and third option.
Correct Answer: shareholders have little control over managers.
The traditional profit-maximizing theory of the firm has been criticized by some economists because ?
A firms do not know how to maximize profits.
B firms have other aims
C it does not explain monopolistic competition
D Both the first and second option
Correct Answer: Both the first and second option
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