• Economics Quiz – 5

    41 Economics of Scale exists when
      A) Average production cose increases with increase in output
      B)  Average production cose decreases with increase in output
      C) Average production cose decreases with decrease in output
      D) Average production cose stays unchanged irrespective of output volume
       
    42 When Marginal product is at maximum, then what is true in the list?
      A) Marginal cost is at the minimum
      B)  Marginal cost is at the maximum
      C) Average product cost is at the maximum
      D) Average variable cost is at the maximum
       
    43 A company can continue with product as long as price is greater than or equal to?
      A) Avg Fixed Cost
      B)  Marginal cost
      C) Avg total Cost
      D) Avg Variable Cost
       
    44 What in the list is not an criteria for Oligopoly?
      A) Large number of sellers
      B)  Interdependece among the competitors
      C) Significant barriers to entry
      D) Large Economies of Scale
       
    45 What is true in Monopolistic Competition?
      A) Market is dominated by one seller
      B) Non-differentiated products
      C) Advertising Cost is high
      D) Advertising Cost is low
       
    46 Which of these unemployment is caused due to changes in general level of economic output?
      A) Frictional Unemployment
      B) Structural unemployment
      C) Cyclical Unemployment
      D) None of these
       
    47 Which method calculates inflation based on purchase price of normal urban and rural households?
      A) Consumer Price Index
      B)  Wholesale Price Index
      C) Both of them
      D) None of these
       
    48 Which in the list is not a main policy tool used by Central Banks?
      A) Money Market Operations
      B) Reserve requirements for Banks
      C) Interest rate cut
      D) Maintaining forex reserves
       
    49 Which of the the following relationship is most likely true?
      A) Money demand rises with nominal interest rate
      B) Money demand rises with nominal income
      C) Money Supply rises with nominal interest rate
      D) Money Supply rises with bank reserve requirements
       
    50 Most likely effect of selling securities by Central Bank
      A) Increase Money Supply
      B) Decrease Money Supply
      C) Increase Interest rate
      D) Decrease Interest rate

     

    Click here for Answer: Answers

    Post Tagged with ,

Leave a Reply

Your email address will not be published. Required fields are marked *