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Economics MCQs with Explanations

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2331EconomicsMedium

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 ?

A160; 270

B10; 30

C30; 10

D10; 3.33

Correct answer

C. 30; 10

Explanation

The correct answer is 30; 10.

2332EconomicsMedium

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that?

AMonopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.

Bthere are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

CMonopolistically competitive firms face a downward-sloping demand curve just like competitive firms.

DThe products are differentiated in a monopolistically competitive market just like in a competitive market.

Correct answer

B. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

Explanation

The correct answer is there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market.

2333EconomicsMedium

The appropriate tax rate to consider judging the vertical equity of a tax system is the?

Amarginal tax rate

Baverage tax rate

Cproportional tax rate

Dhorizontal tax rate

Correct answer

B. average tax rate

Explanation

The correct answer is average tax rate.

2334EconomicsMedium

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because?

ASuch redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.

Bsuch redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.

CSuch redistribution would remove the incentive to work hard, so society’s total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.

Dsuch redistribution would not maximize the total income of all members of society

Correct answer

C. Such redistribution would remove the incentive to work hard, so society’s total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.

Explanation

The correct answer is Such redistribution would remove the incentive to work hard, so society’s total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income..

2335EconomicsMedium

Which province of Pakistan is the largest cotton producing province?

ASindh

BK.P.K

CBaluchistan

DPunjab

Correct answer

D. Punjab

Explanation

The correct answer is Punjab.

2336EconomicsMedium

An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is?

ARs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone

Bthe Rs500 weekly salary that he has forgone to search for another job

CThe Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

DRs0, since he is currently unemployed

Correct answer

C. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

Explanation

The correct answer is The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search.

2337EconomicsMedium

Endorsement means anything written upon the back of the document What does means by Endorse?

ATo verify the person holding cheque

BTo sign one’s name upon the front of cheque

CTo sign one’s name upon the back of cheque

DTo verify signature

Correct answer

C. To sign one’s name upon the back of cheque

Explanation

The correct answer is To sign one’s name upon the back of cheque.

2338EconomicsMedium

When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na?

Acommon market

Bfree trade area

Ccustoms union

Deconomic union

Correct answer

A. common market

Explanation

The correct answer is common market.

2339EconomicsMedium

Durkheim was one of the first scientific sociologists who studied________?

Asex

Bsuicide

Call of the above

Dmental illness

Correct answer

B. suicide

Explanation

The correct answer is suicide.

2340EconomicsMedium

The Superego of Freud,s theory is similar to Mead,s?

Ame

Bgeneralized other

Clibido

Correct answer

B. generalized other

Explanation

The correct answer is generalized other.

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that?

AMonopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.

Bthere are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

CMonopolistically competitive firms face a downward-sloping demand curve just like competitive firms.

DThe products are differentiated in a monopolistically competitive market just like in a competitive market.

Correct answer

B. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market

Explanation

The correct answer is there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market.

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because?

ASuch redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.

Bsuch redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.

Dsuch redistribution would not maximize the total income of all members of society

Correct answer

Explanation

An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is?

ARs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone

Bthe Rs500 weekly salary that he has forgone to search for another job

CThe Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

DRs0, since he is currently unemployed

Correct answer

C. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search

Explanation

The correct answer is The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search.

Economics MCQs with Explanations

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 ________?

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that?

The appropriate tax rate to consider judging the vertical equity of a tax system is the?

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because?

Which province of Pakistan is the largest cotton producing province?

An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is?

Endorsement means anything written upon the back of the document What does means by Endorse?

When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na?

Durkheim was one of the first scientific sociologists who studied________?

The Superego of Freud,s theory is similar to Mead,s?

Economics MCQs with Explanations

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 ________?

The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that?

The appropriate tax rate to consider judging the vertical equity of a tax system is the?

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because?

Which province of Pakistan is the largest cotton producing province?

An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is?

Endorsement means anything written upon the back of the document What does means by Endorse?

When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na?

Durkheim was one of the first scientific sociologists who studied________?

The Superego of Freud,s theory is similar to Mead,s?

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 ?

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 ?