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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

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
In a cartel member firms may be given a fixed amount to produce. This is called a ?
A Limit
B Factor
C Quota
D Quotient
Correct Answer: Quota
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 engages in tying the two products its best strategy is to charge a combined price of ?
A Rs 60
B Rs 90
C Rs 85
D Rs 75
Correct Answer: Rs 85
Collusion is difficult for an oligopoly to maintain ?
A all of these answers
B if additional firms enter of the oligopoly
C because antitrust laws (also known as competition laws) make collusion illegal
D because, in the case of oligopoly self-interest is in conflict with cooperation.
Correct Answer: all of these answers
A situation in which oligopolists interacting with one another each choose their best strategy given the strategies that all the other oligopolists have chosen is known as a ?
A Nash equilibrium
B dominant strategy.
C cartel
D collusion solution
Correct Answer: Nash equilibrium
When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?
A more than the price charged by either monopoly or a competitive market
B less than the price charged by either monopoly or a competitive market
C more than the price charged by a monopoly and less then the price charged by a competitive market
D less than the price charged by a monopoly and more than the price charged by a competitive market
Correct Answer: less than the price charged by a monopoly and more than the price charged by a competitive market
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