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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

For a firm operating in two markets and price discriminating the profit maximising condition is ?
A Marginal revenue in A= Price B
B Marginal revenue in A = Marginal revenue B = Price A = Price B
C Marginal revenue in A = Marginal revenue B = Marginal cost
D Marginal revenue in A = Marginal revenue B = Average cost
Correct Answer: Marginal revenue in A = Marginal revenue B = Price A = Price B
Barriers to entry ?
A Do not exist in monopoly
B Cannot exist in oligopoly
C Do not exist in monopolistic competition
D Do exist in perfect competition
Correct Answer: Do not exist in monopolistic competition
If marginal revenue equals marginal cost ?
A No profit is being made
B Total revenue equals total cost
C Profits are maximised
D Producing another unit would increase profits
Correct Answer: Profits are maximised
The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true ?
A The average cost increase from Rs20 to Rs30
B The total costs for 11 units are Rs700
C The average cost for 10 units is Rs1300
D The average cost for 11 units is Rs1300
Correct Answer: The average cost for 10 units is Rs1300
In the short term a firm will produce provided the revenue ?
A covers fixed costs
B covers variable costs
C covers total costs
D covers revenue
Correct Answer: covers variable costs
If firms earn normal profits ?
A They will aim to leave the industry
B Other firms will join the industry
C The revenue equal total costs
D No profit is made is accounting terms
Correct Answer: The revenue equal total costs
If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?
A Reduce output
B Increase output
C Leave output where it is:
D Increase costs
Correct Answer: Reduce output
Total increase from Rs500 to Rs600 When output increases from 20 to 30 units Fixed costs are Rs200 Which of the following is true ?
A Marginal cost is Rs20
B Average cost rises
C Variable cost rises by Rs200
D Average fixed cost was Rs10originally
Correct Answer: Average cost rises
If marginal cost is positive and falling ?
A Total cost is falling
B Total cost is increasing at a falling rate
C Total cost is falling at a falling rate
D Total cost is increasing at an increasing rate
Correct Answer: Total cost is increasing at a falling rate
The first level of output at which the long run average cost are minimized is called ?
A The Minimum Efficient Scale
B The Minimum External Scale
C The Maximum External Scale
D The Maximum Effective Scale
Correct Answer: The Minimum Efficient Scale
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