Question:

Who introduced various types of price discrimination

A.

Alfred Marshall

B.

Adam Smith

C.

A C Pigou

D.

J B Say

Answer» c. A C Pigou

Question:

Which would definitely not be an example of price discrimination?

A.

a theater charges children less than adults for a movie.

B.

universities charge higher tuition for out-of-state residents.

C.

a doctor charges for services according to the income of patients.

D.

an electric power company charges less for electricity used during off-peak hours when

Answer» d. an electric power company charges less for electricity used during off-peak hours when

Question:

When there is High capital mobility the BP curve is:

A.

Negative

B.

positive

C.

Vertical

D.

Horizontal

Answer» d. Horizontal

Question:

Branding can be good for society because:

A.

it allows people to show off the branded goods they use or wear

B.

it keeps generic goods from taking over the market

C.

it provides useful information to consumers about the quality of branded goods

D.

it helps firms enjoy higher prices and profits

Answer» c. it provides useful information to consumers about the quality of branded goods

Question:

Which of the following is a barrier to entry that typically results in monopoly?

A.

The firm controls the entire supply of a raw material

B.

Production of the industry\s product is subject to economies of scale over a broad range of output

C.

Production of the industry\s product requires a large initial capital investment

D.

The firm holds an exclusive government franchise

Answer» c. Production of the industry\s product requires a large initial capital investment

Question:

If factor prices and factor quantities move in the same direction, we have

A.

a constant cost industry

B.

an increasing cost industry

C.

a decreasing cost industry

D.

any of the above.

Answer» b. an increasing cost industry

Question:

If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, thenthe firm is a

A.

a monopolist

B.

an oligopolist

C.

a perfect competitor

D.

a monopolistic competitor

Answer» c. a perfect competitor

Question:

Under monopolistic competition, super normal profit arise when

A.

AR=AC

B.

MR=MC

C.

AR>AC

D.

AR<AC

Answer» c. AR>AC

Question:

Match the following A B 1. (i) Commodity money (i) Currency 2. (ii) Metallic money (ii) Cheque 3. (iii) Paper money (iii) Gold 4. (iv) Credit money (iv) Bows and arrowsCodes;

A.

(i) (ii) (iii) (iv)

B.

(i) (iii) (ii) (iv)

C.

(iv) (iii) (ii) (i)

D.

(iv) (iii) (i) (ii)

Answer» d. (iv) (iii) (i) (ii)

Question:

Which of the following is a form collusive oligopoly

A.

Bilateral monopoly

B.

Monopoly

C.

cartel

D.

Kinked Oligopoly

Answer» c. cartel