What is the primary objective of government regulation in dealing with monopolies?

• A) Facilitating collusion among competitors
• B) Ensuring allocative efficiency
• C) Minimizing consumer choices
• D) Maximizing monopolist profits

The socially optimal level of price and quantity is determined where:

• A) Marginal social benefit curve intersects marginal private benefit curve.
• B) Marginal social benefit curve intersects marginal social cost curve.
• C) Marginal private benefit curves intersects marginal social cost curve.
• D) Marginal social benefit curve intersects marginal private cost curve.

In which market structure is allocative efficiency maximized?

• A) Monopolistic competition
• B) Oligopoly
• C) Monopoly
• D) Perfect competition

In what scenario government would provide a subsidy to a monopolist?

• A) When the AR curve intersects the AC curve
• B) When the monopolist is maximizing profits
• C) When there is no government regulation
• D) When the monopolist is making a loss

WAPDA is the only power supply company in Pakistan. It maximizes its profits at a point where:

• A) Marginal Cost < Marginal Revenue.
• B) Marginal Cost = Average Revenue.
• C) Marginal Cost = Marginal Revenue.
• D) Marginal cost< Average Revenue.

Suppose in cement industry, five firms get together and decide the optimal quantity and price that maximize their profits. In which market structure, these firms are operating?

• A) Non- collusive oligopoly
• B) Collusive oligopoly
• C) Perfect competition
• D) Monopolistic Competition

In an oligopolistic market, firms are interdependent. What does this mean?

• A) Firms are not affected by each other's actions.
• B) Firms consider and react to competitors' decisions.
• C) Firms merge to form a monopoly.
• D) Firms cooperate without competition.

All other things being equal, a decrease in government spending will:

• A) Shift the aggregate demand curve to the left.
• B) Make the aggregate demand curve flatter.
• C) Shift the aggregate demand curve to the right.
• D) Make the aggregate demand curve steeper.

Which of the following is an example of a public good?

• A) National defense
• B) Fast food restaurant
• C) Private healthcare
• D) Cable television subscription

When oligopolists collude, they are able to:

• A) Restrict output, but not raise price.
• B) Raise price and restrict output, and therefore attain the monopoly profit.
• C) Raise price, but not restrict output.
• D) Raise price and restrict output, but not attain the monopoly profit.

What does the Aggregate Supply (AS) curve represent in macroeconomics?

• A) The total output of goods and services that producers are willing to supply at different price levels.
• B) The total demand for goods and services in an economy.
• C) The total supply of money in an economy.
• D) The total amount of labor available in an economy.

The concept that “Supply creates its own demand" is given by:

• A) None of the given options
• B) Keynesians
• C) New Keynesians
• D) Classicals

The concept of "Say's Law" in classical economics suggests:

• A) That government intervention is necessary for economic stability.
• B) That saving is more important than spending.
• C) That demand creates its own supply.
• D) That supply creates its own demand.

Which of the following is the pre-requisite of price discrimination?

• A) Markets should be independent
• B) Firms should be inflexible to price discriminate
• C) Price elasticity of demand for different customers should be same
• D) None of the given options is true

Which of the following is a reason for firms in monopolistic competition to engage in non-price competition?

• A) Low market demand
• B) Government regulation
• C) High barriers to entry
• D) Product differentiation

Which of the following would be studied in macroeconomics?

• A) Overall consumption of households
• B) All of the given options
• C) Inflation
• D) Gross domestic product

In kinked demand curve model, if one firm lowered its price, everyone else would lower their prices. In this case demand for the firm will be:

• A) Elastic
• B) Perfectly inelastic
• C) Inelastic
• D) Perfectly elastic

Suppose five firms get together and decide the optimal quantity and price. But later on, two firms charge lower price to increase their share and break the agreement between these firms. This is possible in case of:

• A) Non- collusive oligopoly.
• B) Collusive oligopoly.
• C) Duopoly.
• D) Monopolistic Competition.

What is the primary purpose of calculating the marginal social cost (MSC) in economics?

• A) To maximize producer surplus.
• B) To measure the full cost of production, including external costs.
• C) To identify the costs borne by producers.
• D) To determine the equilibrium price in a market.

In which of the following market structures, there is absence of entry barriers and many firms sell differentiated products?

• A) Oligopolistic
• B) Monopoly
• C) Purely competitive
• D) Monopolistically competitive