(A) company trade-off
(B) company dilemma
(C) owner-manager problem
(D) principal-agent problem
The answer is: (D) principal-agent problem
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.
What is meant by entrepot trade?
(A) Trade among three countries
(B) Importing duty-free goods only
(C) Re-importing goods previously exported
(D) Re-exporting goods previously imported
The answer is: (D) Re-exporting goods previously imported
Which of the following characteristic can exist both in perfect competition and in monopoly?
(A) ease of entry
(B) many sellers
(C) many buyers
(D) perfectly elastic supply curve
The answer is: (C) many buyers
A businessman or a company should accept investments that offer rates of return ________ their opportunity costs of capital.
(A) equal to
(B) greater than
(C) less than
(D) related to
The answer is: (B) greater than
When price rises, the quantity demanded generally tends to fall because of:
I. income effect
II. substitution effect
(A) I only
(B) II only
(C) I or II
(D) I and II
The answer is: (D) I and II
If there are changes in factors other than a product’s own price that affect the quantity purchased, the phenomena is termed as
(A) Law of upward-sloping demand
(B) Law of downward-sloping demand
(C) shifts in demand
(D) In-equilibrium of supply and demand
The answer is: (C) shifts in demand
An increase in supply generally ________ price and ________ quantity demanded.
(A) lowers, raises
(B) raises, lowers
(C) lowers, lowers
(D) raises, raises
The answer is: (A) lowers, raises
Marginal revenue (MR) is _____ when demand is elastic, _____ when demand is unit-elastic, and _____ when demand is inelastic.
(A) zero, positive, negative
(B) zero, negative, positive
(C) positive, negative, zero
(D) positive, zero, negative
The answer is: (D) positive, zero, negative
Marginal revenue (MR) is positive when demand is elastic, zero when demand is unit-elastic, and negative when demand is inelastic.
Open market price means the consideration of money that supply or ________ would generally fetch in an open market.
(A) Demand
(B) Different Supply
(C) Similar Supply
(D) None of these
The answer is: (B) Different Supply
“Poverty line” is determined by
(A) Per capita calories intake
(B) Income of the family
(C) Housing and clothing facilities
The answer is: (B) Income of the family