Category: FPSC Economics Lecturer Test Past Papers

(A) MC=P
(B) MC>MR
(C) MC=MR
(D) None of these

Answer: (C) MC=MR
The conditions for Equilibrium in Monopoly is “The marginal cost (MC) is equal to the marginal revenue (MR)”.

(A) Better than Extreme
(B) Lower than Extreme
(C) Worst than Extreme
(D) None of these

Answer: (A) Better than Extreme
Convexity means averages are better than extreme.

(A) Technology
(B) Energy
(C) Tax
(D) Labour

Answer: (D) Labour
The dominant factor of production is labour.

(A) GDP
(B) GNP
(C) NDP
(D) NNP

Answer: (A) GDP
All goods and services produced by a country in specified period of time is called Gross Domestic Product (GDP).

(A) Government
(B) Market force
(C) Demand of goods
(D) Planning authority

Answer: (B) Market force
The central problems of market economy are solved by market force.