Question:

Perfect completion means _____ rivalry

A.

perfect

B.

absence of

C.

fierce

D.

intense

Answer» b. absence of

Question:

It is assumed that the cost curves of all the firms in themonopolistic competition are

A.

Different due to product differentiation

B.

Never considered in equilibrium

C.

Never formulated

D.

Same in spite of product differentiation

Answer» d. Same in spite of product differentiation

Question:

As firms gradually acquire ever more technology, machinery and equipment, workers’productivity gradually ________, and workers wages gradually ________.

A.

rises, decrease

B.

diminishes, decrease

C.

diminishes, increase

D.

rises, increase

Answer» d. rises, increase

Question:

Keynes’s multiplier is known as:

A.

investment multiplier

B.

employment multiplier

C.

Foreign trade multiplier

D.

Saving multiplier

Answer» a. investment multiplier

Question:

If the market demand curve for a commodity has a negative slope then the market structuremust be

A.

perfect competition

B.

monopoly

C.

imperfect competition

D.

The market structure cannot be determined from the information given

Answer» d. The market structure cannot be determined from the information given

Question:

Cross elasticity of demand under monopolistic competition is?

A.

Zero

B.

Highly elastic

C.

Highly inelastic

D.

infinite

Answer» a. Zero

Question:

As output increases in a monopoly, the firm’s total revenue:

A.

first increases and then decreases

B.

first decreases and then increases

C.

increases continuously

D.

decreases continuously

Answer» a. first increases and then decreases

Question:

If there is a permanent increase in the demand for cars, car manufacturers will want tohire ________ workers, which will cause wages in the industry to ________.

A.

more, rise

B.

more, drop

C.

less, rise

D.

less, drop

Answer» a. more, rise

Question:

Under monopoly, the equilibrium price is

A.

Equal to MC

B.

Less than MC

C.

More than MC

D.

Equal to AC

Answer» c. More than MC

Question:

The practice of charging different prices to different consumers for the same goods or services is known as _____

A.

product differentiation

B.

marketing

C.

aggressive selling

D.

price discrimination

Answer» d. price discrimination