Q1. Demand curve of a firm under perfect competition is
(a) Horizontal to x-axis
(b) Negatively sloped
(c) Positively sloped
(d) U-shaped
Q2. The situation in which total Revenues equals to the total cost, is known as
(a) Monopolistic competition
(b) Equilibrium level of output
(c) Break-even point
(d) Perfect competition
Q3. The marginal revenue of a monopolist is
(a) More than price
(b) Equal to price
(c) Less than price
(d) Less than marginal cost
Q4. Production function relates to
(a) Costs to outputs
(b) Costs to inputs
(c) Inputs to outputs
(d) Wage level to profits
Q5. “Economics is what it ought to be” This statement refers to
(a) Normative economics
(b) Positive economics
(c) Monetary economics
(d) Fiscal economics
Q6. The most distinguishing feature of oligopoly is
(a) Number of firms
(b) Interdependence
(c) Negligible influence on price
(d) Price leadership
Q7. A want becomes a demand only when it backed by the
(a) Ability to purchase
(b) Necessity to buy
(c) Desire to buy
(d) Utility of the product
Q8. Under increasing returns and supply curve is
(a) Positively sloped from left to right
(b) Negatively sloped from left to right
(c) Parallel to the quantity-axis
(d) Parallel to the price-axis
Q9. The degree of monopoly power is to be measured in terms of the firm’s
(a) Normal profit
(b) Supernormal profit
(c) Both normal and supernormal profit
(d) Selling price
Q10. Price theory is also known as
(a) Macro Economics
(b) Development Economics
(c) Public Economics
(d) Micro Economics
Solutions:
S1. Ans.(a)
S2. Ans.(c)
S3. Ans.(c)
S4. Ans.(c)
S5. Ans.(a)
S6. Ans.(b)
S7. Ans.(a)
S8. Ans.(a)
S9. Ans.(d)
S10. Ans.(d)
