Question:

When MPC = 0.5, the value of multiplier is

A.

5

B.

0.5

C.

2

D.

4

Answer» c. 2

Question:

Which of the following industries most closely approximates the perfectly competitivemodel?

A.

Automobile

B.

cigarette

C.

newspaper

D.

wheat farming.

Answer» d. wheat farming.

Question:

The deductive method is also called

A.

abstract

B.

analytical

C.

priori method

D.

all the above

Answer» d. all the above

Question:

A perfectly competitive firm gets only normal profit when

A.

MC = MR

B.

AC = AR

C.

AC < AR

D.

MC = AR

Answer» b. AC = AR

Question:

Which of the following Elasticities measure movement along a curve, rather than a shift in the curve:

A.

Price elasticity of demand

B.

Income elasticity of demand

C.

Cross elasticity of demand

D.

None of the above

Answer» a. Price elasticity of demand

Question:

According to Keynes the most important determinant of consumption

A.

Rate of interest

B.

Saving

C.

Income

D.

Investment

Answer» c. Income