Question:

The demand curve of Monopoly firm is ———-slopped.

A.

Downward

B.

Upward

C.

Positively

D.

None of these

Answer» a. Downward

Question:

When a perfectly competitive industry is in long-run equilibrium, all firms in the industry

A.

earn zero economic profits

B.

produce a level of output where short-run marginal cost is equal to short-run average total cost

C.

produce a level of output where long-run marginal cost is equal to long-run average cost

D.

All of the above are correct

Answer» d. All of the above are correct

Question:

A major critique of advertising is that

A.

it provides information to consumers that they would be better off without

B.

it manipulates people\s tastes, leading people to make bad choices

C.

it promotes excessive competition among firms in the industry

D.

it is usually linked to promotions, which undermine the market\s price

Answer» b. it manipulates people\s tastes, leading people to make bad choices

Question:

Bilateral monopoly is a market with

A.

Single buyer

B.

Single seller

C.

Single buyer and single seller

D.

Few buyers and sellers

Answer» c. Single buyer and single seller

Question:

A bilateral monopoly is a market structure consisting of

A.

one buyer

B.

one seller

C.

many buyers

D.

one buyer and one seller

Answer» d. one buyer and one seller

Question:

The foreign trade multiplier also known as the:

A.

Acceleration

B.

employment multiplier

C.

Income multiplier

D.

export multiplier .

Answer» d. export multiplier .

Question:

If a firm sells its output on a market that is characterized by many sellers and buyers, adifferentiated product, and unlimited long-run resource mobility, then the firm is

A.

a monopolist

B.

an oligopolist

C.

a perfect competitor

D.

a monopolistic competitor

Answer» d. a monopolistic competitor

Question:

Product variation refers to

A.

an activity undertaken by a firm to increase demand

B.

a problem with quality control that tends to decrease demand

C.

an activity undertaken by a firm to make demand more price inelastic

D.

None of the above

Answer» a. an activity undertaken by a firm to increase demand

Question:

In the case of paper currency

A.

Intrinsic value and face value are equal

B.

Intrinsic value is less than face value

C.

Intrinsic value is greater than face value

D.

None of the above

Answer» b. Intrinsic value is less than face value

Question:

A monopolized market is in long-run equilibrium when

A.

zero economic profit is earned by the monopolist

B.

production takes place where price is equal to long-run marginal cost and long-run average cost

C.

production takes place where long-run marginal cost is equal to marginal revenue and price is not below long-run average cost

D.

All of the above are correct

Answer» c. production takes place where long-run marginal cost is equal to marginal revenue and price is not below long-run average cost