M C Q s D r i v e
03079682698
mcqsdrive@gmail.com
About
Contact

Contact Info

03079682698

mcqsdrive@gmail.com

Ad Banner

Economics Mcqs 4423 MCQs [All-Courses]

thumb


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

in long-run equilibrium in a competitive market, firms are operating at ?
A the minimum of their average-total-cost curves
B all of these answers are correct
C their efficient scale
D zero economic profit
Correct Answer: all of these answers are correct
If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?
A perfectly inelastic
B perfectly elastic
C upward sloping
D downward sloping
Correct Answer: upward sloping
In the long-run some firms will exit the market if the price of the good offered for sale is less than ?
A marginal revenue
B marginal cost
C average total cost
D average revenue
Correct Answer: average total cost
A grocery store should close at night if the ?
A variable costs of staying open are less than the total revenue due to staying open.
B total costs of staying open are less than the total revenue due to staying open
C variable costs of staying open are greater than the total revenue due to staying open
D total costs of staying open are greater than the total revenue due to staying open
Correct Answer: variable costs of staying open are greater than the total revenue due to staying open
The competitive firm maximize profit when it produces output up to the point where ?
A price equals average variable cost
B marginal revenue equals average revenue
C marginal cost equals total revenue
D marginal cost equals marginal revenue
Correct Answer: marginal cost equals marginal revenue
If a competitive firm doubles its output its total revenue ?
A doubles.
B more than double
C less than doubles.
D cannot be determined because the price of the good may rise or fall
Correct Answer: doubles.
Which of the following is not a characteristic of a competitive market ?
A All of these answers are characteristic of a competitive market
B The are many buyers and sellers in the market
C The goods offered for sale are largely the same.
D Firms generate small but positive economic profits in the long run
Correct Answer: Firms generate small but positive economic profits in the long run
In the long run in perfect competition ?
A price = average cost = marginal cost
B price = average cost = total cost
C price = marginal cost = total cost
D Total revenue = Total variable cost
Correct Answer: price = average cost = marginal cost
In perfect competition ?
A A few firms dominate the industry
B Firms are price makers
C There are many buyers but few sellers
D There are many buyers and sellers
Correct Answer: There are many buyers and sellers
In perfect competition ?
A Short run abnormal profits are completed away by firms leaving the industry
B Short run abnormal profits are competed away by firms entering the industry
C Short run abnormal profits are competed away by the government
D Short run abnormal profits are competed away by greater advertising
Correct Answer: Short run abnormal profits are competed away by firms entering the industry
03079682698
mcqsdrive@gmail.com

Copyright @ 2026 MCQsDrive . All Rights Reserved.