Question:

Only Money Matters is Propounded by:

A.

Keynesians

B.

Monetarists

C.

Classicals

D.

Neo-Classicals

Answer» b. Monetarists

Question:

If the income elasticity of demand for a commodity is found to be 0.4, then the commodity concerned is

A.

Luxury

B.

Necessity

C.

Giffen’s goods

D.

Independent good

Answer» b. Necessity

Question:

A firm should always continue to operate at a loss in the short run if:

A.

the firm will show a profit.

B.

the owner enjoys helping her customers.

C.

it can cover its variable costs and some of its fixed costs.

D.

the firm cannot produce any other products more profitably.

Answer» c. it can cover its variable costs and some of its fixed costs.

Question:

Average revenue curve under perfect competition is

A.

Upward sloping

B.

Downward sloping

C.

Horizontal straight line

D.

Vertical straight line

Answer» c. Horizontal straight line