(A) positive
(B) negative
(C) zero
(D) constant
The answer is: (A) positive
Category: Economics MCQs FPSC NTS PPSC Past Papers Economy Test Questions
Economics MCQs quiz test questions with answers. Basic economics, microeconomics, macroeconomics, managerial economics and world economy multiple choice questions and answers.
In a monopolistic competition, a business finds its maximum-profit position where
(A) MR > MC
(B) MR < MC
(C) MR = MC
(D) MR + MC = 1
The answer is: (C) MR = MC
In a perfect competition, maximum profit occurs where marginal revenue equals
(A) price
(B) cost
(C) marginal cost
(D) marginal profit
The answer is: (A) price
A businessman or a company should accept investments that have ________ net present values.
(A) positive
(B) negative
(C) zero
(D) constant
The answer is: (A) positive
One of the following is included in Personal Income but excluded from National Income. Which one is that?
(A) Dividends
(B) Wages
(C) Interest on Public Debt
The answer is: (C) Interest on Public Debt
Basket of main currencies is
(A) reference rate
(B) currency peg
(C) exchange rate
(D) special drawing rights
The answer is: (D) special drawing rights (SDR)
An isoquant is convex to the origin because of
(A) law of diminishing returns
(B) diminishing marginal rate of substitution between factors
(C) law of increasing returns
The answer is: (B) diminishing marginal rate of substitution between factors
The relationship between price and quantity bought at that price is termed as
(A) demand curve
(B) supply curve
(C) law of one price
(D) equilibrium position
The answer is: (A) demand curve
Why the aggregate demand curve is downward sloping?
As prices fall,
(A) the demand for exports becomes more elastic
(B) fewer goods are imported
(C) the rate of interest will rise
(D) real wealth rises and so spending increases
The answer is: (D) real wealth rises and so spending increases
As prices fall, real wealth rises and so spending increases.
Which group is most likely to suffer during high inflation?
(A) borrowers
(B) importers
(C) entrepreneurs
(D) fixed wage earners
The answer is: (D) fixed wage earners