Question:

In which market structure, price and output solution is indeterminate?

A.

Oligopoly

B.

Monopolistic competition

C.

Perfect competition

D.

Monopoly

Answer» a. Oligopoly

Question:

Under the Perfect competition, products are:

A.

Heterogeneous

B.

Homogenous

C.

Semi-homogeneous

D.

All of these

Answer» b. Homogenous

Question:

Which of the following is not a feature of monopolistic competition?

A.

Homogenous product

B.

Large number of firms

C.

Freedom to entry and exit

D.

Differentiated product

Answer» a. Homogenous product

Question:

Which one of the following is a feature of a perfect competition

A.

Group behavior

B.

Selling cost

C.

Homogeneous product

D.

Differentiated product

Answer» c. Homogeneous product

Question:

Few firms exist under:

A.

Perfect competition

B.

Oligopoly

C.

Monopolistic competition

D.

Both perfect and monopolistic competition

Answer» b. Oligopoly

Question:

Under perfect market conditions mobility of resources and products are

A.

Ensured

B.

Not ensured

C.

Not considered

D.

None of the above

Answer» a. Ensured

Question:

When the D curve is elastic, MR is

A.

1

B.

0

C.

positive

D.

negative.

Answer» c. positive

Question:

Deflation means:

A.

falling price level

B.

rise in price level

C.

increase value of money

D.

None

Answer» a. falling price level

Question:

The best, or optimum, level of output for a perfectly competitive firm is given by the pointwhere

A.

MR equals AC

B.

MR equals MC

C.

MR exceeds MC by the greatest amount

D.

MR equals MC and MC is rising.

Answer» d. MR equals MC and MC is rising.

Question:

In the Quantity Theory of Money Fischer states that, while other things remains thesame,

A.

Price level varies directly with the quantity of money

B.

Price level varies inversely with the quantity of money

C.

Value of money varies directly with the quantity of money

D.

None of the above

Answer» a. Price level varies directly with the quantity of money