Terminology Online Test With Answers

Terminology Online Test

Sr. # Questions Answers Choice
1 A natural mono,poly occurs when: Long-run average costs decline continuously through the range of demand A firm owns or controls some resource essential to production Long-run average costs rise continuously as out put is increased Economies of scale are obtained at relatively low levels of output
2 Who gave the ''theory of comparative advantage''? Adam smith  Ricardo  Hicks  Albert Einstein 
3 What is the main characteristic of a capialist of free market economy:
 Individuals are the owners factors of Production <br> Profit is the min motives of carrying out various activities<br> Consumer freedom<br> All of above <br>
4 Which of hr following can the government not use directly to control the economy:
 Pay rates within the private sector<br> Pay rates in the pubic sector<br> Investment in education <br> Benefits available for the unemployed and sick <br>
5 Investment depends mainly on:
 Past levels of income <br> Futures expected profits <br> Present National Income levels <br> Historic data <br>
6 Where is he headquarters of the world federation of Trade union:
 Czech Republic <br> Russia <br> U.K.<br> U.S.A
7 The primary use to the kinked-demand curve is to explain price rigidity in:
 Oligopoly <br> Monopoly <br> Perfect competition <br> Monopolistic competition <br>
8 Which of the following best expresses the law of demand:
 A high price reduces demand <br> A lower price reduces demand <br> A higher prices reduces quantity demanded <br> A lower prices shifts the demand curve to the right<br>
9 The marginal revenue curve in monopoly:
 Equals the demand curve <br> Is parallel with the demand curve <br> Lies below and converges with the demand curve<br> Lies below and diverges form the demand curve <br>
10 For a perfectly competitive firm:
Price equals marginal revenue <br> Price is greater than marginal revenue <br> Price equals total revenue <br> Price equals total cost<br>
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