Question:

Find out the correct statement:

A.

Prediction of economic models cannot be refuted by empirical evidence

B.

Models transform verbal expressions in to more scientific expressions

C.

Models make no assumptions

D.

Economic models are comprehensive and not partial

Answer» b. Models transform verbal expressions in to more scientific expressions

Question:

The price paid for any factor of production tends to be equal to:

A.

the wage rate

B.

the value of the marginal product of that input

C.

the price of the product sold by the firm that inputs

D.

the price of the product sold by the firm that buys the inputs

Answer» b. the value of the marginal product of that input

Question:

A ___________occurs in an industry where there is only one producer of a good and onlyone supplier.

A.

bilateral monopoly

B.

monopoly

C.

monopsony

D.

duopoly

Answer» a. bilateral monopoly

Question:

‘Homogenous products’ is a characteristic of:

A.

Perfect competition only

B.

Perfect oligopoly only

C.

Both (a) and (b)

D.

None of the above

Answer» c. Both (a) and (b)