Economics MCQs

Page No. 181

If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?


adecreased production


bmaintained production at the current level


ctemporarily shut down.


dincreased production


View Answer increased production

For a competitive firm, marginal revenue is ?


atotal revenue divided by the quantity sold


bequal to the quantity of the good sold


caverage revenue divided by the quantity sold


dequal to the price of the good sold



Which of the following market would most closely satisfy the requirements for a competitive market ?


aelectricity


b cable television


ccola


dmilk


View Answer milk

For a perfectly competitive firm ?


a Price equals marginal revenue


b price is greater than marginal revenue


cprice equals total revenue


d price equals total cost



In the short run firms in perfect competition will still produce provided ?


a The price covers average variable cost The price covers average variable cost


bThe price covers variable cost


cThe price covers average fixed cost


d The price covers fixed costs



A profit maximizing firm is perfect competition produces where ?


aTotal revenue is maximized


b Marginal revenue equals zero


cMarginal revenue equals marginal cost


d Marginal revenue equals average cost



Firms in perfect competition face a?


aperfectly elastic demand curve


bperfectly inelastic demand curve


cperfectly elastic supply curve


dperfectly inelastic supply curve



A state planning ideology arose in LDCs as a reaction to nationalist perceptions of ?


aKeeping balanced budget, a price target


bslow economic growth under colonial capitalism


cminimizing public spending in the rural areas


d western countries, nation-state ideology



Which of the following assumptions underlying input-output analysis raises about its validity ?


aThe technical coefficients are fixed which means so substitution between inputs occurs


bThere are no externalities so that the total effect of carrying out several activities is the sum of the separate effects


cEach good is produced by only one industry and each industry produces only one commodity


dAll of these


View Answer All of these

Branko Horvat’s historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?


ahas failed


bworks well in Utopia


cis widely used in sub Saharan Africa


dis the only way to eradicate poverty?


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