Economics quiz part 2

Total Questions : 25

Scoring System:
Correct Answer    : +1 points
Incorrect Answer  : -1 point
Not Answered      :  0 point


The final result will appear at the end. All The Best.
  

1. Cournot Oligopoly Is Characterized By:
Easy adjustment of prices, thus strategic choice of output
Easy adjustment of output, thus strategic choice of prices
Sequential decision-making
2. The Net Result Of The Prisoner's Dilemma, When Applied To A Situation Involving Two Oligopolists, Is That
Prices will be above the level implied by joint profit maximization
Neither firm makes a profit and both leave the industry
Prices will be below the level implied by joint profit maximization
3. A Profit-Maximizing Monopolist Practicing Price Discrimination Will Charge The Lowest Price In The Market Where Demand
Is least price-elastic
Is most price-elastic
has unit price-elasticity
4. A Monopolist's Marginal Revenue Curve Lies Below Average Revenue, Because:
Marginal magnitudes consider smaller increments than average ones
A monopolist has to decrease price of all goods sold if it wants to expand output
A monopolist typically has to pay high taxes
5. Which Of The Following Could Constitute A Case Of Strategic Entry Deterrence?
The incumbent forgoes some of the current profit in favour of better opportunities in case of possible a price war
The incumbent invests into production to make more profit before its market share is contested by an entrant
The incumbent accounts for the expected moves of the entrant and uses that information to maximize own profits
6. Which Of The Following Is A Necessary Condition For A Monopoly To Arise?
Superior technology or scale economies
Production-specific patents
None
7. Elasticity In Economics Is:
A measure of responsiveness.
The relative difference in price and marginal cost.
An index used to measure market competitiveness.
8. Two Points On The Same Indifference Curve Represent The Same
Utility level
Capital level
Price level
9. Which Of The Following Industries Is Most Prone To The Occurrence Of Natural Monopolies?
Utility
Computer software
Agriculture
10. Which Of The Following Is Not A Characteristic Of A Perfectly Competitive Industry?
Producers set the price of their products freely.
The industry consists of many small firms producing similar products.
There is no government intervention in the industry.
11. The Invisible Hand Refers To:
Adam Smith’s description of the workings of market economies.
David Ricardo’s depiction of global gains from international trade.
Paul Krugman’s interpretation of the events preceding the financial crisis of 2007-08.
12. Which Of The Following Changes Would Most Likely Increase The Price Of Music CDs?
A decrease in the popularity of online music streaming services
A decrease in the cost of CD production
An increase in the price of cheese
13. The Demand Curve For Cigarettes Is Steep Because:
The quantity of cigarettes demanded does not vary much with price.
When the price increases quantity of cigarettes supplied increases rapidly.
The cigarette market is competitive.
14. When The Planting Of A Beautiful Garden In One Home Increases The Happiness Of The Neighbors Who Also Have A View Of The Garden, The Garden Is Said To Create A
Positive externality
Positive marginal cost
Human factor of production
15. According To British Economist David Ricardo, The Gains From International Trade Depend On:
Comparative advantage in production
The restrictions placed by the government on trade transactions
The possession of natural resources
16. Which Of The Following Would Be An Opportunity Cost Of Going To College?
Four years of foregone earnings in the labor market
The student debt accumulated during college
The tuition cost of college
17. Which Of The Following Is A Basic Characteristic Of 'Oligopoly'?
Few sellers, many buyers
Few sellers, few buyers
Many sellers, many buyers
18. What Effect Will A Decrease In Demand And An Increase In Supply Have On Equilibrium Price?
Equilibrium price will fall
Equilibrium price will be constant
Equilibrium price will rise
19. In India, Inflation Measured By The -
Wholesale Price Index Number
National Income Deflator
Consumer Price Index for urban non-manual workers
20. Which Of The Following Statements Is NOT Correct About The Factors That Gave Rise To The Consumer Movement In India?
Tax on soft beverages
Hoarding and Black Marketing
Frequent food shortages
21. One Of The Essential Conditions Of "Perfect Competition" Is
same price for same things at one time
product differentiation
many sellers and a few buyers
22. Zero Price Elasticity Of Demand Means
whatever the change in price, there is absolutely no change in demand
for a small change in price, there is a large change in demand
for a large change in price, there is a small change in demand
23. Which Of The Following Is The Most Close To The Definition Of Oligopoly?
The cigarette industry
The welding shop
Wheat growing farmers
24. Duopoly Is The Special Case Of Which Type Of Market Structure?
Oligopoly
Monopsony
Monopoly
25. Which Of The Following Correctly Describes The Nature Of India’s Economy?
Mixed Economy
Socialist Economy
Capitalist Economy
26. In Economic Terms, Globalization Is The Process Of Rapid ______ Between Countries.
Integration
Investment
Competition