Other Subjects
Other Subjects MCQs With Answers
0 Other Subjects MCQs for CSS, PPSC, FPSC, NTS and entry-test preparation. Take a scored quiz instead →
The liquidity preference curve (demand for money) shifts rightward if there is an increase in:
AThe central bank discount rate
BCommercial bank reserve requirements
CThe general price level stability
DNominal income or total national output
The Accelerator Theory of investment posits that investment spending depends directly on the:
ALevel of interest rates
BRate of change in output or consumer demand
CCorporate tax rates
DSupply of bank credit
In the long run, a firm experiences economies of scale when its long-run average cost (LRAC) curve is:
AUpward sloping
BDownward sloping
CHorizontal
DU-shaped at its minimum point
Under monopolistic competition, individual firms face a demand curve that is:
AHighly elastic and downward sloping
BPerfectly inelastic (vertical)
CPerfectly elastic (horizontal)
DUnit elastic throughout
A natural monopoly exists primarily because of:
AExtensive economies of scale relative to market size
BOwnership of rare natural resources
CIllegal predatory pricing tactics
DGovernment patents and copyrights
The substitution effect of a price change is always:
ANegative (acts in the opposite direction of the price change)
BPositive
CZero
DEqual to the income effect
For a normal good, the income effect and substitution effect of a price fall work:
AIn opposite directions
BIn the same direction to increase quantity demanded
CTo decrease total consumption
DTo leave utility unchanged
The Price Consumption Curve (PCC) for two goods that are independent of each other is:
AVertical
BUpward sloping
CHorizontal
DDownward sloping
The elasticity of substitution between two perfectly complementary goods is equal to:
AOne
BInfinity
CNegative one
DZero
An isocost line represents all combinations of inputs that:
AYield the same total output
BCost the firm the same total outlay
CYield maximum total revenue
DHave equal marginal products