Economics Quiz - Question & Answers Set - 8

Economics Quiz - Question & Answers Set - 8

Question 1 :
The upper section of a kinked demand curve has a ---------------price elasticity than the lower part.?
Higher
Lower
Equal
None of these

Question 2 :
All of the following are true about a monopolist except ?
Marginal revenue is greater than price
Marginal revenue is greater than price
Marginal revenue is zero if price elast icity of demand equals one.
Marginal revenue decreases with increases in output

Question 3 :
The Lerner Index equals ?
(P - MC)/P
P/(MC - P)
(MC - P)/MC
MC/(MC - P)

Question 4 :
Negative network externality in which a consumer wishes to own an expensive or unique good ?
Snob effect
Bandwagon effect
Ratchet effect
None of these

Question 5 :
When the price lines are parallel it implies ?
The same commodity prices, but different amounts of money expenditure
Different commodity prices, but same amount of money expenditure
Same commodity prices and same amount of money expenditure
Different amounts of commodity prices and different amounts of money expenditure.

Question 6 :
The Prisoner's Dilemma illustrates ?
The lack of co - operation among firms in a competitive market
The lack of co - operation among firms in a monopolistic market
The lack of co - operation between a monopoly and its customers
Why in an oligopoly market, co - operation is difficult to achieve even when it is mutually beneficial.

Question 7 :
When negative income effect is greater than substitution effect, it is the?
Giffen good
Inferior good
Normal good
Luxury good

Question 8 :
A firm has a certain initial equilibrium price when demand function Q(D)=1004P and supply function is 30+3P. If the firm’s demandfunction is shifted to 170 4P, what is the initial equilibrium price and new equilibrium price?
10 and 20
20 and 10
15 and 20
7 and 17

Question 9 :
Which one of the following is a necessary condition for barometric price leadership?
Must be a large firm
Must have control over a large portion of the market
Must have good knowledge about the prevailing market conditions
Must be a low cost firm

Question 10 :
The Engel curve for a giffen good is ?
Negatively sloped
Positively sloped
Vertical
Horizontal

Question 11 :
The locus of general equilibrium points of exchange in a two individual two commodity economy is called ?
T he consumption contract curve
The production contract curve
The social welfare function
The transformation curve

Question 12 :
By leading to a higher nominal interest rate, inflation leads to lowermoney balances and hence people are required to go to banks more frequently.This cost is termed as
Shoe leather cost
Menu cost
Tax cost
None of these

Question 13 :
Macroeconomic impact of one firm’s price adjustment on the demand for all firm’s products is called?
ggregate supply externality
Aggregate demand externality
Aggregate income externality
None of these

Question 14 :
According to quantity theory of money equation, an increase in ------------ causes inflation ?.
M oney supply
Money demand
Rate of interest
None of these

Question 15 :
The horizontal parallel section of the Keynesian speculative demand for money indicates that ?
There is no speculative demand for money
There is small but limited demand f or money
Monetary policy ineffective
Monetary policy becomes effective

Model Question Papers

Union Bank of India PO 2008 English Language

Binder Grade II Logical Reasoning & Mathematics

KSIE Junior Assistant Logical Reasoning & Mathematics

Kerala PSC LDC Thrissur 2003 Logical Reasoning & Mathematics

Kerala PSC LDC Palakkad 2003 Logical Reasoning & Mathematics

Economics Quiz - Question & Answers Set - 8