問題一覧
1
An improvement in production technology will...............
shift the supply curve to the right
2
Barriers to entry are highest in which two types of markets?
oligopoly and monopoly
3
In which type of market do you have the largest number of firms?
perfect competition and differentiated competition
4
If marginal revenue is $6 and marginal cost is $4, the firm seeking to maximize profits should:
increase its output
5
A monopoly is a market structure in which
there is only one firm producing a product which has no close substitutes
6
A natural monopoly is a market situation in which
none of the above
7
The profit-seeking monopolist operates at a level of output where
MR = MC
8
To find the profit-maximizing price and production rate, the firm compares its
Marginal to marginal cost
9
A monopolist has a downward sloping demand curve because
its demand curve is the same as the industry's demand curve
10
Without Economic theories, economic assumptions can be theoretically valid, and assumed to be practically significant.
False
11
Economics is the study of choice under condition of scarcity and alternative uses of resources. This definition is proposed by
Lionel Robbins
12
The definition of Economics given in question 1 above is generally accepted based on the assumption that
Resources to satisfy human wants are scarce
13
Similarities between natural and social sciences include all the followings except
Experiments
14
In Walrasian equilibrium, the assumption of Pareto efficiency is that
market must cleared
15
The convexity of the indifference curves to the origin denotes
diminishing marginal rate of substitution
16
If consumer prefers a bundle of commodity 'A' over 'B' and 'D' over 'C', but 'B' over 'C' and 'D'. We can correctly assume that
Bundle 'A' lies on the highest indifference curve
17
consumer is in equilibrium and maximizes his utility when
Marginal rate of Substitution is equal to the ratio of commodity x and y prices
18
Compared to a perfectly competitive market, a monopoly market will usually generate
higher prices and lower output
19
The difference between substitution effect and income effect for an increase in the price of a normal good is that
substitution effect will be less than income effect
20
The income effect of a change in price is often negative for normal goods and positive for inferior goods.
True
21
A theory of the firm must have a minimum degree of generality so as to be applicable to the explanation of the behavior of a ‘group’ of firms.
True
22
The distinctive feature of Oligopoly from other market structures is its ability to influence the market.
True
23
::................................is used to solve for equilibrium in an oligopoly market structure.
game theory
24
Cournot competition usually involves
two firms competition
25
Suppose two firms operate in a perfectly competitive market. Each produce 40 gallons at market price of $40 at equilibrium and they receive profit of $1600 each. Can they maximise profit by choosing different quantity?
they cannot maximise profit
26
Under oligopoly market structure, the equilibrium where neither firms would want to change is referred to as
Nash equilibrium
27
The main factor that differentiate monopoly and duopoly is the...................................
number firm
28
In Nash equilibrium,..............................................
oligopoly equilibrium price usually closer to marginal cost than the monopoly equilibrium price.
29
In oligopoly,
the more firms enter the market, the smaller the price effect will be, and the lower the Nash equilibrium price.
30
In oligopoly, as the number of firms approaches infinity,,...................................................................
the price effect approaches zero
31
Bilateral monopoly is a market that consist............................................
a single seller and a single buyerq
32
In bilateral monopoly,........................................
equilibrium is not determined by market forces.
33
In bilateral monopoly, equilibrium is determined by the followings except......................
collusion
34
Under conditions of bilateral monopoly, economic analysis leads to indeterminacy
demand and supply
35
In bilateral monopoly market structure, the buyer is usually referred to as
monopsonist
36
From the graph below, under bilateral monopoly, equilibrium point where profit is maximized and optimal output is produced is (insert graph 2 here)
III
37
:From the graph below, under bilateral monopoly, monopsonist's equilibrium is shown by point (insert graph 2 here)
V
38
The following statements about duopolists in the Cournot model of oligopoly are correct except….
If the duopolists produce homogeneous products, then the equilibrium price will be the same as if the industry is a monopoly.
39
A Nash equilibrium is a situation where……………………………………………….
A situation where the combined payoffs of the players is the maximum possible.
40
On a graph for a monopoly or monopolistic competitor, which of the following curves intersect?
average revenue and marginal revenue curves only
41
Under bilateral monopoly condition, economic analysis leads to indeterminacy demand and supply which is resolved by exogenous factors.
True
42
A model is an abstraction from reality which is achieved by a set of ........................... and ............................. assumptions
meaningful and consistent
43
Abstraction of model is necessary in conceptualizing phenomenon because studying the real economic world is .............................
complex
44
The two main targets for which a model is built are ................................ and ..............................
analysis and prediction
45
Validity of a model can be judged on
all of the above
46
Theory of firm generally explains the followings except
Demand and supply
47
............................often apply to investigate economic problems and economic relationships.
scientific methods
48
Commodity’s own price is the only factor which is regarded as having influence on demand". This assumption is established on
Price theory
49
In Marshallian demand, as price changes, the demand of the agents in the market will
equally change
50
It is not possible to use the Edgeworth box to depict Pareto optimality.
False
51
Walrasian equilibrium is not a Pareto optimal.
False
52
There are two main targets for which a model is built, they are ..............
analysis and prediction
53
A good model has the following features except............
theoretical unconformity
54
............................ is a systematic means in which economists conduct the study of their subject
Methodology
55
The study of economics is often based on how individuals and societies choose to employ abundant resources for production and distribution of products and services in an economy.
False
56
::Commodity’s own price is the only factor which is regarded as having influence on demand.
False
57
The common tools used in model building in economics are
theories and methods
58
illustrates how firms combine factor inputs of production to produce equilibrium output at given equilibrium prices.
Pareto efficiency
59
If a consumer is assumed to have maximized his utility in given his income and market prices, then his assumed to be..................
rational
60
Combinations of goods situated on the indifference curve yield ................................. utility.
the same
61
The combinations of goods lying on a higher indifference curve yield............................................
higher level of satisfaction and are preferred
62
An indifference map show below indicates that the higher utility is derived from (insert graph 1 here)
indifference curve III
63
Using Walrasian model, it is assumed that only one agent is endowed with a bundle of commodities.
False
64
The slope of An indifference curve is..............................
negative
65
The following are the properties of indifference curve except.....................................
positive slope
66
When production function increases at an increasing rate, it shows that
marginal product > 0
67
The overall efficiency of all units of inputs combined is
average product
68
A profit-maximizing monopolist sets an output of 100 per day and a price of $10. Which of the following statements is true?
The firm's SMC and MR curves intersect at an output of 100, and the point on its MR curve at this output is at $10.
69
Which of the following statements about a profit-maximizing monopolist is false?
This firm might respond to a fall in demand by reducing its output and increasing its price.
70
The allocation of the intersection of two agents consume their Marshallian demands given prices is known as............................
Walrasian equilibrium
71
Pareto optimality is identifies at which...........................................
no consumer is made better off without another being made worse off.