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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

The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
A p = Z
B P = MC + Z
C p = MC
D P = MC – Z
Correct Answer: P = MC + Z
Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?
A restrict; promote
B restrict; restrict
C promote; promote
D promote; restrict
Correct Answer: promote; restrict
In the UK, electricity industry parts are a ____ and other parts are ___ ?
A nationalized; privatized
B natural monopoly; potentially competitive
C cartel; a sellers’ market
D monopolistic competition duopoly
Correct Answer: natural monopoly; potentially competitive
Sales staff are keen to sell extended warranties because ?
A extended warranties offer value for money.
B the cost of repair will usually exceed the cost of the warranty
C they are paid commission on each extended warranty they sell.
D They are concerned about customer satisfaction.
Correct Answer: they are paid commission on each extended warranty they sell.
A conglomerate merger is a merger of ?
A firms producing the same product
B firms at various stages in production process.
C firm producing complementary products
D firms producing unrelated products.
Correct Answer: firms producing unrelated products.
Antimonopoly laws are based on the proposition that ?
A increasing market power is the best way to achieve efficiency.
B competition is the best way to achieve efficiency.
C public ownership is the best way to achieve efficiency
D regulation is the best way to achieve efficiency.
Correct Answer: competition is the best way to achieve efficiency.
The external benefits of using cars are ____ and the external costs are _____?
A low; low
B high; high
C low; high
D high; low
Correct Answer: low; high
Between 1990 and 1999 car ownership per thousand of the population fell in ?
A Spain
B Belgium
C USA
D UK
Correct Answer: USA
Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
A Persuade the regulator to operate in the industry’s interests
B Persuade the regulator to act in the firms interests.
C Bribe the regulator.
D Persuade the government to change the regulatory regime.
Correct Answer: Persuade the regulator to operate in the industry’s interests
In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
A deregulation
B making markets contestable
C natural monopoly.
D cross-subsidization.
Correct Answer: making markets contestable
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