Question:

Perfect competition prevails when the demand for the output ofeach producer is

A.

Elastic

B.

Perfectly elastic

C.

Inelastic

D.

Perfectly inelastic

Answer» d. Perfectly inelastic

Question:

The book “The Economics of Imperfect Competition” is written by

A.

Alfred Marshal

B.

E H Chamberlin

C.

Joan Robinson

D.

J M Keynes

Answer» c. Joan Robinson

Question:

Lerner Index is a measure of:

A.

Elasticity of demand

B.

Monopoly power

C.

Inequality

D.

None

Answer» b. Monopoly power

Question:

The market structure which has large number of sellers selling differentiated product iscalled

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» a. Perfect competition

Question:

The RBI set up in the year

A.

1921

B.

1935

C.

1947

D.

1951

Answer» b. 1935

Question:

Which one of the following is an example of “fiat money”

A.

Precious stones

B.

Grains

C.

Gold coins

D.

Currency notes

Answer» d. Currency notes

Question:

The lowest point in the business cycle is referred to as the:

A.

Expansion.

B.

Boom.

C.

Trough.

D.

Peak.

Answer» c. Trough.

Question:

A market is clearly NOT perfectly competitive if which of the following is true inequilibrium

A.

price exceeds marginal cost.

B.

price exceeds average variable cost.

C.

price exceeds average fixed cost.

D.

price equals opportunity cost

Answer» a. price exceeds marginal cost.

Question:

When prices of only few commodities rise

A.

Sporadic Inflation

B.

suppressed inflation

C.

open inflation

D.

creeping inflation

Answer» a. Sporadic Inflation

Question:

A natural monopoly refers to a monopoly that is defended from direct competition by

A.

economies of scale over a broad range of output

B.

a government franchise

C.

control over a vital input

D.

a patent or copyright

Answer» a. economies of scale over a broad range of output