QUIZ 2 (ECONOMICS)

Q1) Which of the following most closely approximates our definition of oligopoly?

1. The cigarette industry.
2. The barber shop.
3. The gasoline stations.
4. Wheat farmers.

ANSWER: The cigarette industry.

Q2) One of the essential condition of perfect competition is :

1. product differentiation.
2. multiplicity of prices for identical products at any one time.
3. many sellers and a few buyers.
4. Only one price for identical goods at any one time.

ANSWER:Only one price for identical goods at any one time.

Q3) The theory of distribution relates to which of the following?

1. The distribution of assets .
2. The distribution of income.
3. The distribution of factor payments.
4. Equality in the distribution of the income and wealth.

ANSWER:Equality in the distribution of the income and wealth.

Q4) If an industry is characterised by economies of scale then

1. barriers to entry are not very large.
2. long run unit costs of production decreases as the quantity the firm produces increases.
3. capital requirement are small due to the efficiency of the large scale operation.
4. the costs of entry into the market are likely to be substantial.

ANSWER:long run unit costs of production decreases as the quantity the firm produces increases.

Q5) Movement along the same demand curve is known as:

1. Extension and Contraction of Demand.
2. Increase and Decrease of Demand.
3. Contraction of supply.
4. Increase of supply.

ANSWER:Increase and Decrease of Demand.

Q6) When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will :

1. decrease.
2. increase.
3. remain the same.
4. contract.

ANSWER:increase

Q7) The income elasticity of demand being greater than one,the commodity must be

1. a necessity.
2. a luxury.
3. an inferior good.
4. None of these.

ANSWER:a luxury

Q8) When there is one buyer, and many sellers then that situation is called 

1. Monopoly
2. Single Buyer Right.
3. Down right
4. Double buyers right.

ANSWER:Single Buyer Right.

Q9) The measure of a worker's real wage is 

1. The change in his real productivity over a given time 
2. His earnings after deduction at source 
3. His daily earnings.
4. The purchasing power of his earnings. 

ANSWER:The purchasing power of his earnings.

Q10) Average Revenue means 

1. the revenue per unit of commodity sold.
2. the revenue from all commodities sold.
3. the profit realised from the marginal unit sold.
4. the profit realised by sale of all commodities.

ANSWER:the revenue per unit of commodity sold.

NOTE: 

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