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This set of Micro economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 2 Set 10
Q1 | The marker structure in which number of sellers is small withinterdependence is called
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q2 | The cost incurred to alter the position or slope of demand curve is known as
- Marginal cost
- Selling cost
- Alternate cost
- Additional cost
Q3 | Which of the following is a form collusive oligopoly
- Bilateral monopoly
- Monopoly
- cartel
- Kinked Oligopoly
Q4 | In the long run, which of the following is applicable to a firm undermonopolistic competition
- AR = AC
- AR > AC
- AR < AC
- AR = MC
Q5 | A discriminating monopolist will charge a higher price from whichgroup of customers?
- Group with more elastic
- Group with less elastic
- Group with Unitary Elastic
- Group with Infinitely Elastic
Q6 | Perfect price discrimination means that every customer ____________
- buys the same amount
- pays the same price
- contributes the same revenue
- pays what she thinks the product is worth
Q7 | Supernormal profit refers to
- High proportion of net profit
- Minimum necessary profit to induce an entrepreneur to remain in business
- Unexpectedly high Profit
- Residual surplus
Q8 | Which one of the following is related to the commodity money
- Stones
- Cattles
- Grains
- All of the above
Q9 | Which of the following is not related to commodity money
- All commodities were not uniform in quality
- It is difficult to store and prevent the loss of value
- They lacked portability
- There was no problem of coincidence of wants
Q10 | Find the odd man out with reference to money
- Copper
- Silver
- . Cattles
- Gold
Q11 | Match the following A B 1. (i) Commodity money (i) Currency 2. (ii) Metallic money (ii) Cheque 3. (iii) Paper money (iii) Gold 4. (iv) Credit money (iv) Bows and arrowsCodes;
- (i) (ii) (iii) (iv)
- (i) (iii) (ii) (iv)
- (iv) (iii) (ii) (i)
- (iv) (iii) (i) (ii)
Q12 | Which of the following is not correctly matched
- Bows and arrows – used as money in the hunting society
- Cattles – used as money in the pastoral society
- Grains – used as money by the agricultural society
- Gold and silver coins – used as money in which the face value is greater than its
Q13 | Assertion (A): Necessity led to the invention of moneyReason(R) : Barter system failed to perform the major functions of money
- (A) is true but (R) is false.
- Both (A) and (R) are false
- Both (A) and (R) are true and (R) is the correct explanation of (A)
- Both (A) and (R) are true but (R) is not the correct explanation of (A)
Q14 | Which one of the following is an example of “fiat money”
- Precious stones
- Grains
- Gold coins
- Currency notes
Q15 | In the case of paper currency
- Intrinsic value and face value are equal
- Intrinsic value is less than face value
- Intrinsic value is greater than face value
- None of the above
Q16 | The most liquid form of all assets is
- Bonds
- . Debentures
- Bill of exchange
- Currency notes
Q17 | In India the standard money is
- Gold coins
- Rupee
- Dollar
- Paisa
Q18 | In the case of a ‘full bodied money’
- Intrinsic value is less than face value
- Intrinsic value is equal to face value
- Intrinsic value is greater than face value
- None of the above
Q19 | In the case of a ‘token money’
- Face value is less than the metal value
- Face value is equal to the metal value
- Face value is greater than the metal value
- None of the above
Q20 | Demand for money arises from
- Money acts as a medium of exchange
- Money acts as a store of value
- Both A and B
- Neither A nor B
Q21 | Cost – push inflation arises due to
- Rise in wages
- Rise in profit
- Rise in the prices of raw materials
- All of the above
Q22 | Which of the following is a concept of ‘broad money’
- M1
- M2
- M3
- All of the above
Q23 | In the Quantity Theory of Money Fischer states that, while other things remains thesame,
- Price level varies directly with the quantity of money
- Price level varies inversely with the quantity of money
- Value of money varies directly with the quantity of money
- None of the above
Q24 | Inflation is a situation where
- Prices are falling
- Value of money is falling
- Value of money is rising
- All of the above
Q25 | In the case of ‘creeping inflation’ prices are rising at
- Less than 3% per month
- Less than 3% per annum
- Around 5% per month
- Around 5% per annum