Question:

In long run all the firms in the monopolistic competition

A.

Always earns profit

B.

Incurs loss

C.

Earns normal profit only

D.

May earn normal profit, abnormal profit or incur losses

Answer» c. Earns normal profit only

Question:

A monopolistically competitive market is distinguished from perfectcompetition by the fact that

A.

Few sellers

B.

It has few buyers

C.

It deals with differentiated products

D.

None of the above

Answer» c. It deals with differentiated products

Question:

Refrigerator company is an example of

A.

Oligopoly

B.

Perfect competition

C.

Monopoly

D.

Bilateral monopoly

Answer» a. Oligopoly

Question:

Which of the following represents the major functions of the central bank

A.

Note issuing agency

B.

Controller of credit

C.

Banker to the government

D.

All of the above

Answer» d. All of the above

Question:

Inflation is a situation where

A.

Prices are falling

B.

Value of money is falling

C.

Value of money is rising

D.

All of the above

Answer» c. Value of money is rising

Question:

Demand curve is perfectly elastic under:

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

All of the above

Answer» a. Perfect competition

Question:

Homogenous product means products are:

A.

Similar

B.

Close substitutes

C.

Quite alike

D.

None of the above

Answer» d. None of the above

Question:

In India the standard money is

A.

Gold coins

B.

Rupee

C.

Dollar

D.

Paisa

Answer» b. Rupee

Question:

Existence of large number of buyers and sellers andhomogenous product is a feature of :

A.

Monopoly

B.

Duopoly

C.

Perfect Competition

D.

Oligopoly

Answer» c. Perfect Competition

Question:

Uniform price is a feature of

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» a. Perfect competition