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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

Which of the following will NOT cause a shift in the demand curve for compact discs ?
A A change in wealth
B A change in the price of compact discs
C A change in income.
D
Correct Answer: A change in the price of compact discs
Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?
A perfect substitutes
B complements
C unrelated goods.
D substitutes.
Correct Answer: complements
Demand curves are derived while holding constant ?
A incomes, tastes, and the price of other goods.
B income, tastes, and the price of the good.
C income and tastes
D tastes and the price of other goods
Correct Answer: incomes, tastes, and the price of other goods.
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?
A The ceteris paribus effect
B The diminishing marginal utility effect.
C The substitution effect
D The income effect
Correct Answer: The substitution effect
The law of demand implies that ?
A as prices rise, demand decrease
B as prices fall, quantity demanded increase
C as prices fall demand increases
D as prices rise, quantity demanded increases
Correct Answer: as prices fall, quantity demanded increase
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
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