Question:

If the demand curve facing a firm is perfectly elastic, then:

A.

its marginal revenue will equal price.

B.

its marginal revenue schedule will decrease at an increasing rate.

C.

its marginal revenue schedule decreases twice as fast as the demand curve.

D.

it can increase its total revenue by lowering the price of its product.

Answer» a. its marginal revenue will equal price.

Question:

The marker structure which have large number of sellers selling differentiatedproduct is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» c. Monopolistic competition

Question:

The IS curve has a ——slope

A.

Positive

B.

Negative

C.

Zero

D.

None of these

Answer» b. Negative

Question:

Among the following which is not a feature of inflation?

A.

long term process

B.

state of disequilibrium

C.

dynamic in nature

D.

non monetary phenomenon.

Answer» d. non monetary phenomenon.

Question:

State whether Economics is :

A.

A positive science only

B.

Neither a positive science

C.

A science but not art

D.

A science or an art depending on who uses Economics and for what

Answer» d. A science or an art depending on who uses Economics and for what