M C Q s D r i v e
03079682698
mcqsdrive@gmail.com
About
Contact

Contact Info

03079682698

mcqsdrive@gmail.com

Ad Banner

Economics Mcqs 4423 MCQs [All-Courses]

thumb


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

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
Correct Answer: selling a certain product of given quality and cost per unit at different prices to different buyers
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
Correct Answer: all of the above
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
Correct Answer: the price is greater than the marginal revenue
If a marginal revenue exceeds marginal cost, a monopolists should?
A increase should
B decrease output
C keep output the same because profits are maximized when marginal revenue exceeds marginal cost
D raise the price
Correct Answer: increase should
If regulators break up a natural monopoly into many smaller firms, the cost of production ?
A will rise
B will fall
C will remain the same
D could either rise or fall depending on the elasticity of the monopolist’s supply curve
Correct Answer: will rise
Public ownership of natural monopolies ?
A tends to be inefficient.
B usually lowers the cost of production dramatically.
C creates synergies between the newly acquired firm and other government-owned companies.
D does none of the things described in these answers
Correct Answer: tends to be inefficient.
Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?
A Cause the monopolist to exit the market
B improve efficieny
C raise the price of good
D attract additional firms to enter the market
Correct Answer: Cause the monopolist to exit the market
Compared to a perfectly competitive market a monopoly market will usually generate ?
A higher prices and lower output
B higher prices and higher output
C lower prices and lower output
D lower prices and higher output
Correct Answer: higher prices and lower output
A monopolist maximizes profit by producing the quantity at which ?
A marginal revenue equals marginal cost
B marginal revenue equals price
C marginal cost equals price
D marginal cost equals demand
Correct Answer: marginal revenue equals marginal cost
A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a ?
A natural monopoly
B perfect competitor
C government monopoly
D regulated monopoly
Correct Answer: natural monopoly
03079682698
mcqsdrive@gmail.com

Copyright @ 2026 MCQsDrive . All Rights Reserved.