According to the signalling view, what role does education play?
Correct answer A. It only helps firms sort workers into high-ability and low-ability workers
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Economics MCQs
Page 90 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 90 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
According to the human capital view of education, what does education do?
Correct answer B. It increases human capital and the wages of workers
What kind of curve do firms in perfect competition face?
Correct answer D. A perfectly elastic demand curve
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Where does a profit-maximising firm in perfect competition produce?
Correct answer B. Where marginal revenue equals marginal cost
In the short run, firms in perfect competition will continue to produce as long as which condition is met?
Correct answer C. The price covers average variable cost
Which of the following is true for a perfectly competitive firm?
Correct answer D. Price equals marginal revenue
Which of these markets comes closest to meeting the requirements of a competitive market?
Correct answer D. Milk
For a competitive firm, what is marginal revenue equal to?
Correct answer C. The price of the good sold
A competitive firm is producing where marginal revenue exceeds marginal cost. How could it increase profit?
Correct answer A. By increasing production
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In the long run, what forms a competitive firm’s supply curve?
Correct answer E. The portion of the marginal cost curve that lies above the average total cost curve
How does the long-run market supply curve compare with the short-run one?
Correct answer D. It is always more elastic than the short-run market supply curve
If all firms in a market have identical costs and the inputs they use are readily available, what will the long-run market supply curve for the good be?
Correct answer B. Perfectly elastic
If the long-run market supply curve for a good is perfectly elastic, what will a rise in demand cause in the long run?
Correct answer B. An increase in the number of firms in the market but no increase in the price of the good
Where do firms in monopolistic competition maximise profit?
Correct answer A. Marginal revenue = marginal cost
What will effective branding tend to do?
Correct answer C. Make demand more price inelastic
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Under Porter’s five forces model, conditions are more favourable for firms in an industry when which of the following is true?
Correct answer D. Entry threat is low
In marketing, what does “USP” stand for?
Correct answer C. Unique Selling Proposition
When is a production technique technically efficient?
Correct answer B. When there is no way to make a given output using less of one input and no more of the other inputs
Decreasing returns to scale means that which variable rises as which other variable rises?
Correct answer B. Long-run average cost rises, output rises
If a firm is not producing the output needed to exploit all economies of scale, what has it failed to reach?
Correct answer B. Minimum efficient scale