Question:

Theory of demand examines the behaviour of the——–

A.

Consumer

B.

Producer

C.

Firm

D.

Industry

Answer» a. Consumer

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:

Inflation represents:

A.

fall in price level

B.

increase value of money

C.

decrease value of money

D.

None

Answer» c. decrease value of money

Question:

In the short run, a monopolist will shut down if it is producing a level of output wheremarginal revenue is equal to short-run marginal cost and price is

A.

greater than average total cost

B.

less than average total cost

C.

greater than average variable cost

D.

less than average variable cost

Answer» d. less than average variable cost