Question

11-“Salary should be increased as there is an increase in cost of living”. This is an example of:  Scientific statementNormative statementPositive statementNegative statement

Question 12

In the monopolistic market it is observed that a differentiated product always has:  Perfect substitutesNone of the given optionsNo close substitutesClose substitutes

Question 13

Identify in which one of the following market structures the marginal revenue is equal to price?  OligopolyMonopolistic competitionMonopolyPerfect competition

Question 14

Al Amariah Company wants to make the production at lowest possible cost. Which one of the following measures it must focus in such situation?  Economic efficiencyTechnological efficiencyMarket informationMarket information

Question 15

In economics, the long run is observed as the time period in which we find:  All factors of production are fixedAt least one of the factors of production is fixedAll factors of production are variableProfits are negative

Question 16

The price which is artificially imposed by law or government may be termed as:  Ceiling priceFloor priceEquilibrium priceFlat price

Question 17

Which one of the following is average variable cost (AVC) if the output is 50 units and total variable cost is RO1000?  9501002050

Question 18

Al Mudhish Company determines the price and output for its products. Identify which one of the following features is RELEVANT to such market?  Uniform PriceUse of Brand namePrice MakerExcess Capacity

Question 19

Which one of the following are functions of central planning authority?  Decides preference of products to produceControl all resources of economyProfit motive but not social benefitNone of the given options are correct

Question 20

If the price of a product increases by 10% and demand decreases by 25%. It is the situation of:   Perfectly elastic demandUnitary elastic demandRelatively elastic demandRelatively inelastic demand

Answer 1