Suppose a profit maximizing firm sells 1500 units of output,
it gets total revenue worth Rs. 95000. If the cost of production is Rs. 75000,
the level of profit is:
15000.
17000.
20000.
26000.
According to Classical economists, economy always remains:
Stagnant.
At full
employment level.
Below full employment level.
Above full employment level.
A price taker is:
A firm
that accepts different prices from different customers.
A monopolistically competitive firm.
A firm that cannot influence the market price.
An oligopolistic firm.
The output level in long run is determined by:
Aggregate
demand.
Aggregate supply.
The government.
Money supply.
Business-cycle instability is best corrected through
government policies is a primary implication of:
Classical Economists.
Monetarist.
J.M.
Keynes.
New Classical Economists.
Famous concept “Government has a role in maintaining full
employment” is given by:
J.M.
Keynes.
Adam Smith.
David Ricardo.
J.B. Say.
According to Classical economists, an increase in aggregate
demand would:
Only increase the price level.
Only increase the level of output.
Increase
both the price level and the level of output.
Increase the price level and decrease the level of output.
Keynesian demand management policies could not be
successfully applied in a situation of:
Stagflation.
Hyper inflation.
Cost push inflation.
Demand
pull inflation.
In Car industry, there are fewer manufacturers that
manufacture slightly differentiated cars. They take decisions by considering
the actions of rival firms. This industry operates in:
Monopoly.
Oligopoly.
Natural Monopoly.
Monopolistic Competition.
Oligopoly differs from monopolistic competition in that an
oligopoly includes:
Product differentiation.
No
barriers to entry.
Barriers to entry.
Downward sloping demand curves facing the firm.
In a classical model, a rightward shift in aggregate supply
keeping aggregate demand constant will:
Increase
the price level only.
Increase the level of output only.
Increase both the price level and the level of output.
Decrease the price level and increase the level of output.
Which one of the following is most likely to lead to an
increase in aggregate demand if there is an increase in:
Government tax revenues.
Household savings.
Demand for imports.
Business
capital investment
A monopolistically competitive firm in short run equilibrium:
Will make negative profit (lose money).
Will
make zero profit (break-even).
Will make positive profit.
Any of the given is possible.
A Natural Monopoly is most likely to exist when there are:
Long term patents.
Large barriers to entry.
Government
regulations.
Large economies of scale.
Royal Leather Industries Ltd Pakistan operates in a monopolistic
competition and earns normal profit in the short run. In the long run, it will
make:
Negative profits.
Abnormal losses.
Normal
profits only.
Supernormal profits only.
To hire the next worker, the firm pays Rs.50. Fifty rupees
is the:
Marginal cost.
Marginal revenue.
Marginal
input cost.
Marginal revenue product.
According to classical economists, what was the main reason
of fall in investment during great depression?
High interest rate
Low interest rate
Large government expenditures
Fall in
consumption expenditures
The most important factor in determining the long-run profit
potential in monopolistic competition is:
Free
entry and exit.
The elasticity of the market demand curve.
The elasticity of the firm's demand curve.
The reaction of rival firms to a change in price.
The price level in long run is determined by:
Aggregate supply.
Aggregate demand.
The government.
Money
supply.
Which of the following would cause the short run aggregate
supply curve to shift to the left, but have no effect over the long run
aggregate supply?
Prices
of inputs decrease
Prices of inputs increase
The amount of factors of production increase
The amount of factors of production decrease
Comments
Post a Comment
Please give us your feedback & help us to improve this site.