Microeconomics

JKPSC Assistant Professor (Economics) · Economics · 69 practice questions with answers and explanations: 12 Easy, 57 Medium, 0 Hard.

Sample questions

Sample Easy question 1

A Nash equilibrium is a situation where:

  1. No player can gain by changing strategy alone
  2. All players cooperate
  3. One player dominates
  4. Prices are fixed
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Answer: A. Each strategy is a best response to the others.

Sample Easy question 2

The law of demand states that, other things being equal, as price rises quantity demanded:

  1. Rises
  2. Doubles
  3. Falls
  4. Stays the same
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Answer: C. There is an inverse relation between price and quantity demanded.

Sample Easy question 3

A market with a single seller is a:

  1. Monopoly
  2. Perfect competition
  3. Monopolistic competition
  4. Oligopoly
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Answer: A. There are no close substitutes.

Sample Medium question 4

The revealed preference theory was propounded by:

  1. Pareto
  2. Marshall
  3. Paul Samuelson
  4. Hicks
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Answer: C. It avoids the use of utility.

Sample Medium question 5

The weak axiom of revealed preference (WARP) says that if A is revealed preferred to B, then B is:

  1. Not revealed preferred to A
  2. Equal to A
  3. Unrelated
  4. Revealed preferred to A
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Answer: A. It ensures consistency.

Sample Medium question 6

The strong axiom of revealed preference was formulated by:

  1. Houthakker
  2. Slutsky
  3. Samuelson
  4. Hicks
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Answer: A. It extends WARP to chains.

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