Question:

The essential condition to act as money is:

A.

It is homogeneous

B.

It is legal tender

C.

It is backed by gold

D.

It is generally acceptable

Answer» d. It is generally acceptable

Question:

In the case of a ‘full bodied money’

A.

Intrinsic value is less than face value

B.

Intrinsic value is equal to face value

C.

Intrinsic value is greater than face value

D.

None of the above

Answer» b. Intrinsic value is equal to face value

Question:

Division of Labour is limited by the extent of:

A.

Supply

B.

Demand

C.

Price

D.

Market

Answer» d. Market

Question:

Diminishing marginal returns are most compatible with:

A.

Economies of scale.

B.

Advantages from specialization.

C.

Positively-sloped marginal cost curves

D.

Depreciation of the capital stock.

Answer» b. Advantages from specialization.

Question:

At the best, or optimum, level of output for the pure monopolist,

A.

MR = SMC

B.

P = SMC

C.

P = lowest SAC

D.

P is highest.

Answer» a. MR = SMC

Question:

Under conditions of pure monopoly:

A.

there are close substitutes.

B.

there is no advertising.

C.

the firm is a price taker.

D.

entry is blocked.

Answer» d. entry is blocked.

Question:

Marginal revenue in a monopoly is:

A.

always greater than the price

B.

always equal to the price

C.

always smaller than the price

D.

sometimes greater and sometimes smaller than the price

Answer» c. always smaller than the price

Question:

The dual pricing system of charging high price during peak time and low price during ofpeak time is called

A.

Double pricing

B.

Dual pricing

C.

kinked pricing

D.

peak load pricing

Answer» d. peak load pricing