Question:

Assertion (A): Necessity led to the invention of moneyReason(R) : Barter system failed to perform the major functions of money

A.

(A) is true but (R) is false.

B.

Both (A) and (R) are false

C.

Both (A) and (R) are true and (R) is the correct explanation of (A)

D.

Both (A) and (R) are true but (R) is not the correct explanation of (A)

Answer» d. Both (A) and (R) are true but (R) is not the correct explanation of (A)

Question:

The theory of monopolistic competition was popularized by

A.

Marshall

B.

Keynes

C.

Chamberlin

D.

Pigou

Answer» c. Chamberlin

Question:

Which aspect of taxation involves normative economics?

A.

The incidence of the tax

B.

The fairness of the tax

C.

The effect of the tax on incentives to work

D.

All of the above

Answer» b. The fairness of the tax

Question:

Under perfect market conditions the individual firm in the industry has——————- control over the price of the product.

A.

Some

B.

Full

C.

No

D.

None of the above

Answer» c. No

Question:

Under monopoly, the equilibrium price is

A.

Equal to MC

B.

Less than MC

C.

More than MC

D.

Equal to AC

Answer» c. More than MC

Question:

If factor prices and factor quantities move in the same direction, we have

A.

a constant cost industry

B.

an increasing cost industry

C.

a decreasing cost industry

D.

any of the above.

Answer» b. an increasing cost industry