Question:

Excess capacity is a feature of equilibrium under

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» c. Monopolistic competition

Question:

Monopolistically competitive firms

A.

Are small in size

B.

Have small share in the market

C.

Are large in the size

D.

Both A and B

Answer» d. Both A and B

Question:

The large number of firms producing the same commodity ensure that the individual firmhas no control over

A.

Price of the commodity

B.

The quantity of the commodity

C.

Both of the above

D.

None of the above

Answer» c. Both of the above

Question:

A bilateral monopoly is a market structure consisting of both a ______and a _____

A.

oligopoly and monopoly

B.

monopoly and monopsony

C.

oligopoly and perfect competition

D.

monopoly and perfect competition

Answer» b. monopoly and monopsony

Question:

A firm practicing price discrimination will be

A.

Changing qualities of the product

B.

Buying from the cheapest market

C.

Buying from firms

D.

Charging different prices in different markets

Answer» d. Charging different prices in different markets

Question:

Long run Phillips Curve is :

A.

Parallel

B.

Horizontal

C.

Vertical

D.

Kinked

Answer» c. Vertical

Question:

Let the cash reserve ratio is 12%. Then the value of credit multiplier will be

A.

8.0

B.

8.3

C.

10

D.

12

Answer» b. 8.3

Question:

Which of the following is a differentiated product?

A.

A hamburger

B.

A shirt

C.

An automobile

D.

All of the above

Answer» d. All of the above

Question:

In long run the monopolist can earn abnormal profit because of

A.

Blocked entry

B.

High selling price

C.

Low cost

D.

Economies of scale

Answer» a. Blocked entry

Question:

Cartel is one form of:

A.

Monopoly

B.

Duopoly

C.

Collusive oligopoly

D.

Non-collusive oligopoly

Answer» c. Collusive oligopoly