Question # 1

If the estimated values of Y and Py in 1987 are Rs. 20,000 and Rs. 6 respectively, what is the maximum price of X.

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Rs.420

Rs.240

Rs.300

Rs.360

If average variable cos tis less then marginal cost then certainly.

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Per unit total cost is rising

Per unit total cost is constant

Per unit total cost is falling

Per unit variable cost is rising

A monopoly there is

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No difference between firm and industry

A few firms

Lot of firms

none of these

In Production of goods and services tradeoffs exist becasue.

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Buyers and sellers often negotiate prices

Society has only a limited amount of productive resources

Not all production is efficient

Human wants and needs are limited at a particular point in time

The demand curve of unitary elastic commodity is.

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Rectangular hyperbola

Parabola

Straight line

None of these

Elasticity of demand of luxurious goods is always more elastic

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More elastic

Less elastic

Equal elastic

None elastic

A typical demand curve cannot be

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Rising upwards to the right

A straight line

Concave to origin

Convex to origin

Marginal cost is the change is cost the result from a one unit increase in.

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Price

Cost

Output

Revenue

When the price of an inferior goods falls ceteris paribus the substitution effect leads to ________ in the quantity purchased and the income effect leads to _______ in the quantity purchased.

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An increase an increase

An increase, a decrease

A decrease, an increase

A decrease, a decrease

"Principles of economics" is the book of

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Robbins

Adam smith

Hicks

Marshall

Which of the following is a characteristic of monopolistic competition.

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One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product quality price and marketing

When firms are free is enter and exit the market

In the short run the competitive firm will produce if.

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Price is equal to marginal cost

Price is equal to marginal revenue

Price is equal to total cost

Price is equal to are greater than average variable cost.

A production possibilities curve indicates that when resources are being used efficiently

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More of one good cna be produced only if less of another good is produced

More of one good can be produced only if its price is lowered

Producing more of one good result in greater production of other goods

More of one good can be product without producing less of other goods

The method most commonly used to test the overall significance of a regression is.

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The t test

The F -test

Chi square test

R

In the short run if price falls the firm will respond by

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Shutting down

Equating average variable cost to marginal revenue

Reducing output along its marginal cost curve as long as marginal revenue exceed average variable cost

None of the above

Which of the following is a characteristics of monopolistic competition.

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One seller serving the entire market

When each firm sells an identical product

When firms do not compete on a product's quality price and marketing.

When firms are free to enter and exit the market

Duopoly is a market situation when there is

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Single seller

Many seller

Two seller

Few seller

One of the following has more elastic demand.

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A commodity with substitutes

A commodity having more than one use

A commodity commonly use

None of these

If a monopolist's demand curve is downward sloping and linear, then its total revenue curve must be.

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Identical to the demand curve

A ray from the origin with a slope equal to price

negative sloped with twice the slope of the demand curve

A rising function of output that increases at a decreasing rate , reaches a maximum, then falls.

If a monopolist faces a downward sloping market demand curve its.

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Average revenue is always less than marginal revenue

Marginal revenue is greeter than the price of the units it sells.

Average revenue is less than the price of its product.

Marginal revenue is always less than the price of the units it sells

Skills that can be transferred to other employers are called.

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General skills

Specific skills

Non pecuniary skills

All of the above

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