Question:

There are only a few sellers under

A.

Perfect Competition

B.

Monopolistic competition

C.

Monopoly

D.

Oligopoly

Answer» d. Oligopoly

Question:

A monopoly is a ________, therefore the demand curve it faces is ________

A.

price taker, downward-sloping

B.

price taker, horizontal

C.

price setter, downward-sloping

D.

price setter, horizontal

Answer» c. price setter, downward-sloping

Question:

Which of the following is an anti-deflationary monetary policy

A.

Purchase of government securities from commercial banks and from the public

B.

Sale of government securities from commercial banks and from the public

C.

Raising the cash reserve ratio

D.

All of the above

Answer» a. Purchase of government securities from commercial banks and from the public

Question:

Long run equilibrium price is also called:

A.

Normal price

B.

Abnormal price

C.

Market price

D.

Just price

Answer» a. Normal price

Question:

Monopoly is:

A.

Presence of competition

B.

Absence of competition

C.

Both A & B

D.

None of these

Answer» b. Absence of competition

Question:

Firm and industry are the same under:

A.

Perfect competition

B.

Oligopoly

C.

Monopoly

D.

Duopoly

Answer» c. Monopoly

Question:

The dual pricing system of charging high price during peak time and low price during of peak time is called

A.

Double pricing

B.

Dual pricing

C.

kinked pricing

D.

peak load pricing

Answer» d. peak load pricing

Question:

The demand for a factor of production is:

A.

Derived

B.

Direct

C.

Indirect

D.

None of these

Answer» a. Derived

Question:

Price is constant or “given” to the individual firm selling in a purely competitive marketbecause:

A.

the firm\s demand curve is downward sloping.

B.

there are no good substitutes for the firm\s product.

C.

each seller supplies a negligible fraction of total supply.

D.

product differentiation is reinforced by extensive advertising.

Answer» c. each seller supplies a negligible fraction of total supply.

Question:

The cost incurred to alter the position or slope of demand curve is known as

A.

Marginal cost

B.

Selling cost

C.

Alternate cost

D.

Additional cost

Answer» b. Selling cost