Question:

The price at which the demand and supply are equal is called:

A.

Normal price

B.

Support price

C.

Equilibrium price

D.

Fair price

Answer» c. Equilibrium price

Question:

The marker structure in which number of sellers is small withinterdependence is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» d. Oligopoly

Question:

Under monopolistic competition, the long run equilibrium of thefirm is established at the

A.

Minimum point of LAC

B.

Point where LAC is still falling

C.

Point where LAC is rising

D.

Minimum point of LMC

Answer» b. Point where LAC is still falling

Question:

Selling cost is insignificant under:

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

All of the above

Answer» b. Monopoly

Question:

The rate of inflation in walking inflation is:

A.

between 3to 10 %

B.

below 3 %

C.

More than 10%

D.

More than 3%

Answer» a. between 3to 10 %

Question:

If a perfectly competitive industry is in long-run equilibrium, which of the following ismost likely to be true

A.

some firms can be expected to leave the industry.

B.

individual firms are not operating at the minimum points on their average total cost curves.

C.

firms are earning a return on investment that is equal to their opportunity costs.

D.

some factors are not receiving a return equal to their opportunity costs.

Answer» c. firms are earning a return on investment that is equal to their opportunity costs.

Question:

The short-run supply curve of a firm in perfect competition is the segment of its:

A.

marginal cost curve that lies above the minimum average total cost

B.

marginal revenue curve that lies above the minimum average total cost

C.

marginal cost curve that lies above the minimum average variable cost

D.

marginal revenue curve that lies above the minimum average variable cost

Answer» c. marginal cost curve that lies above the minimum average variable cost

Question:

When a group of monopolistic competition attains the equilibrium,the firms in the group

A.

Charge different prices, but produce identical outputs

B.

Produce different output, but charge the same price

C.

Charge different price and produce different output

D.

None of the above

Answer» b. Produce different output, but charge the same price

Question:

Sacrifice ratio measures :

A.

Output lose

B.

profit lose

C.

Income lose

D.

None

Answer» a. Output lose

Question:

Which one of the following is related to the commodity money

A.

Stones

B.

Cattles

C.

Grains

D.

All of the above

Answer» d. All of the above