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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

A model of Game theory of oligopoly is known as the ?
A Prisoner’s Dilemma
B Monopoly Cell
C Jailhouses Sentences
D Jury Box
Correct Answer: Prisoner’s Dilemma
Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?
A Rs 85
B Rs 75
C Rs 80
D Rs 60
Correct Answer: Rs 75
Many economics argue that resale price maintenance ?
A has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?
B is price fixing and, therefore is prohibited by law
C is price fixing and therefore, is prohibited by law and enhances the market power of the producer
D enhances the market power of the producer
Correct Answer: has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?
As the number of sellers in an oligopoly increases ?
A output in the market tends to fall because each firm must cut back on production
B the price in the market moves further from marginal cost
C collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects
D The price in the market moves closer to marginal cost
Correct Answer: The price in the market moves closer to marginal cost
When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?
A more than the level produced by a monopoly and less than the level produced by a competitive market
B less than the level produced by a monopoly and more than the level produced by a competitive market
C less than the level produce by either monopoly or a competitive market
D more than the level produced by either monopoly or a competitive market
Correct Answer: more than the level produced by a monopoly and less than the level produced by a competitive market
Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
A Should produce more units
B has maximized profits.
C is in a Nash equilibrium
D Should produce fewer units
Correct Answer: Should produce more units
A market structure in which many firms sell products that are similar but not identical is known as ?
A monopolistic competition
B monopoly
C perfect competition
D oligopoly
Correct Answer: monopolistic competition
In a cartel ?
A Firms compete against each other
B Price wars are common
C Firms use price to win market share from competitors
D Firms collude
Correct Answer: Firms collude
In the Kinked demand curve theory ?
A There is a kink in the marginal cost curve
B Demand is price inelastic
C Demand is price elastic
D non-price competition is likely
Correct Answer: non-price competition is likely
The Kinked Demand curve theory assumes ?
A Firms cooperate
B Firms act as part of cartel
C Firms are competitive
D Firms are not profit maximisers
Correct Answer: Firms are competitive
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