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Economics Mcqs 4423 MCQs [All-Courses]

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.

A firm will shut down in the short run if ?

A fixed costs exceed revenues.

B it is suffering a loss.

C variable costs exceed revenues

D total costs exceed revenues

Review Detailed Answer

Correct Answer: variable costs exceed revenues

A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

A £35

B £15

C £30

D £60

Review Detailed Answer

Correct Answer: £35

The formula for average variable cost (AVC) is ?

A DTVC/Dq

B q/TVC

C Dq/DTVC

D TVC/q

Review Detailed Answer

Correct Answer: TVC/q

A graph showing all the combinations capital and labor available for a given total cost is the ?

A expenditure set

B isocost line.

C budget constraint

D isoquant

Review Detailed Answer

Correct Answer: isocost line.

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

A an indifference curves.

B an isoquant.

C an isocost line

D a production functions

Review Detailed Answer

Correct Answer: an isoquant.

Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

A downward sloping to the right

B U-shaped

C Horizontal

D upward sloping to the right

Review Detailed Answer

Correct Answer: U-shaped

If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is and the marginal product of the third worker is _?

A 160; 270

B 10; 30

C 10; 3.33

D 30; 10

Review Detailed Answer

Correct Answer: 30; 10

Diminishing marginal return implies ?

A decreasing average fixed costs.

B decreasing marginal costs.

C decreasing average variable costs.

D increasing marginal costs.

Review Detailed Answer

Correct Answer: increasing marginal costs.

The costs that depend on output in the short run are ?

A total fixed cost only.

B total variable costs only.

C both total variable costs and total costs.

D total costs only

Review Detailed Answer

Correct Answer: both total variable costs and total costs.

Which statement is False ?

A Fixed costs are zero if the firms is producing nothing.

B Fixed costs are the difference between total costs and total variable costs

C There are no fixed costs in the long run

D Fixed costs do not depend on the firm’s level of output

Review Detailed Answer

Correct Answer: Fixed costs are zero if the firms is producing nothing.

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

A firm will shut down in the short run if ?

A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

The formula for average variable cost (AVC) is ?

A graph showing all the combinations capital and labor available for a given total cost is the ?

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is and the marginal product of the third worker is _?

Diminishing marginal return implies ?

The costs that depend on output in the short run are ?

Which statement is False ?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

A firm will shut down in the short run if ?

A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

The formula for average variable cost (AVC) is ?

A graph showing all the combinations capital and labor available for a given total cost is the ?

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?

Diminishing marginal return implies ?

The costs that depend on output in the short run are ?

Which statement is False ?

If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is and the marginal product of the third worker is _?