QUIZ 2 (ECONOMICS)
Q1) Which of the following most closely approximates our definition of oligopoly? The cigarette industry. The barber shop. The gasoline stations. Wheat farmers. ANSWER: The cigarette industry. Q2) One of the essential condition of perfect competition is : product differentiation. multiplicity of prices for identical products at any one time. many sellers and a few buyers. 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? The distribution of assets . The distribution of income. The distribution of factor payments. 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 barriers to entry are not very large. long run unit costs of production decreases as the quantity the firm produces increases. ...
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