Question:

Cost – push inflation arises due to

A.

Rise in wages

B.

Rise in profit

C.

Rise in the prices of raw materials

D.

All of the above

Answer» d. All of the above

Question:

Under perfect competition:

A.

AR and MR are identical

B.

AR is greater than MR

C.

MR is lower than AR

D.

None of these

Answer» a. AR and MR are identical

Question:

Which is a barrier to entry?

A.

patents

B.

revenue maximization

C.

profit maximization

D.

elastic product demand

Answer» a. patents

Question:

The Theory of Glut is the contribution of:

A.

Ricardo

B.

Malthus

C.

J.S. Mill

D.

Adam Smith

Answer» b. Malthus

Question:

Which of the following is not correctly matched

A.

Bows and arrows – used as money in the hunting society

B.

Cattles – used as money in the pastoral society

C.

Grains – used as money by the agricultural society

D.

Gold and silver coins – used as money in which the face value is greater than its

Answer» c. Grains – used as money by the agricultural society

Question:

Which of the following industries is most likely to be monopolistically competitive?

A.

The automobile industry

B.

The steel industry

C.

The car repair industry

D.

The electrical generating industry

Answer» c. The car repair industry

Question:

Peak is the — turning point of the business cycle.

A.

Upper turning point

B.

Lower turning point

C.

Middle turning point

D.

None of these

Answer» a. Upper turning point

Question:

OPEC is an example of

A.

Bilateral monopoly

B.

Monopoly

C.

cartel

D.

Kinked Oligopoly

Answer» c. cartel

Question:

_______ is situation in which a particular market is controlled by a small group of firms.

A.

monopsony

B.

oligopoly

C.

perfect competition

D.

monopoly

Answer» b. oligopoly

Question:

Which of the following is a concept of ‘broad money’

A.

M1

B.

M2

C.

M3

D.

All of the above

Answer» c. M3