Question:

Marginal revenue of a firm is constant throughout under:

A.

Perfect competition

B.

Monopolistic competition

C.

Oligopoly

D.

All the above

Answer» a. Perfect competition

Question:

The market demand curve for a perfectly competitive industry is QD = 12 – 2P. Themarket supply curve is QS = 3 + P. The market will be in equilibrium if

A.

P = 6 and Q = 9

B.

P = 5 and Q = 2

C.

P = 4 and Q = 4

D.

P = 3 and Q = 6

Answer» d. P = 3 and Q = 6

Question:

Cross elasticity of demand under Perfect competition is?

A.

Zero

B.

Infinitely elastic

C.

Highly elastic

D.

Highly inelastic

Answer» a. Zero

Question:

The demand curve faced by a monopoly is:

A.

vertical

B.

horizontal

C.

upward sloping

D.

downward sloping

Answer» d. downward sloping

Question:

Which of the following is not an element of high Powered money?

A.

Currency

B.

Repos

C.

Required Reserves

D.

Excess reserves

Answer» b. Repos

Question:

The percentage of deposits of commercial banks statutorily kept with the RBI is :

A.

Cash Reserve Ratio

B.

Statutory Liquidity Ratio

C.

Repo Rate

D.

None of these

Answer» a. Cash Reserve Ratio

Question:

The working group in India include in the age:

A.

14 to 55

B.

15 to 59

C.

20 and above

D.

25 and above

Answer» b. 15 to 59

Question:

The best or optimum level of output for the pure monopolist

A.

MR=MC

B.

P=MC

C.

P=AC

D.

Highest P

Answer» a. MR=MC

Question:

The headline inflation in India is measured in:

A.

WPI

B.

CPI

C.

GDP Deflator

D.

All

Answer» a. WPI