Question:

Demand for money arises from

A.

Money acts as a medium of exchange

B.

Money acts as a store of value

C.

Both A and B

D.

Neither A nor B

Answer» c. Both A and B

Question:

Above the BP curve BoP is:

A.

surplus

B.

Deficit

C.

Either Surplus or Deficit

D.

None.

Answer» a. surplus

Question:

In the long-period,

A.

All factors are fixed

B.

Some factors are fixed and others are variable

C.

All factors are variable

D.

None of the above

Answer» c. All factors are variable

Question:

A seller cannot influence the market price under

A.

Perfect Competition

B.

Monopoly

C.

Monopolistic competition

D.

All of the above

Answer» a. Perfect Competition

Question:

If firms in monopolistic competition are enjoying positive economic profits, in the longrun

A.

they will continue enjoying such profits, since new firms will be unable to enter the industry

B.

consumers will cease wanting to buy such expensive goods and will switch to cheaper alternatives

C.

this will attract new firms into the industry, causing prices to drop and profits to disappear

D.

the government will have to step in and regulate the price

Answer» c. this will attract new firms into the industry, causing prices to drop and profits to disappear

Question:

Price rise in every second is referred as

A.

Running inflation

B.

Galloping inflation

C.

Walking inflation

D.

Hyper inflation

Answer» d. Hyper inflation

Question:

Which form of monopoly control is most advantageous to consumer?

A.

price controls

B.

quantity controls

C.

lump sum tax

D.

all the above

Answer» a. price controls

Question:

Equilibrium literally means:

A.

Balance

B.

Imbalance

C.

Change

D.

None of these

Answer» a. Balance

Question:

Find the odd man out

A.

Bank rate policy

B.

Taxation

C.

Open market operation

D.

Variable reserve ratio

Answer» c. Open market operation

Question:

When there is Zero or No capital mobility the BP curve is:

A.

Negative

B.

positive

C.

Vertical

D.

Horizontal

Answer» c. Vertical