Question:

The perfectly elastic segment of the LM curve is:

A.

Keynesian range

B.

Classical range

C.

Intermediate range

D.

None of these

Answer» a. Keynesian range

Question:

Economic efficiency for the entire economy requires that :

A.

Potential gains to anyone necessitate losses to another

B.

All goods be produced at their lowest possible opportunity costs

C.

Maximum-valued output is obtained from given resource

D.

All of the above

Answer» d. All of the above

Question:

Which one of the following is an example of close substitute:

A.

Tea and Coffee

B.

Milk and water

C.

Bread and Butter

D.

Pen and pencil

Answer» a. Tea and Coffee

Question:

Price discrimination is possible

A.

Under any market form

B.

Only under monopoly

C.

Only under monopolistic competition

D.

Only in perfect competition

Answer» b. Only under monopoly

Question:

If a small change in price leads to infinitely large change in quantity demanded, then the demand is:

A.

Perfectly elastic

B.

Perfectly inelastic

C.

Elastic

D.

Inelastic

Answer» b. Perfectly inelastic