Which of the followings describe agents?

• A) Individual firm
• B) Individual laborer
• C) Individual consumer
• D) All of the given options are true

Differentiated products in monopolistic competition mean that:

• A) All firms offer the same product with no variation
• B) Products are exactly the same across all firms
• C) Products are highly standardized
• D) Each firm's product has unique characteristics

What may contribute to a monopolist's ability to retain its market share through brand loyalty?

• A) Cost leadership
• B) Perfect competition
• C) Diversification
• D) Product differentiation

Which of the following is an example of an information product?

• A) A bicycle
• B) A hamburger
• C) A music album
• D) A pair of shoes

When oligopolists collude, they are able to:

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

Which of the following is NOT a type of price discrimination?

• A) Third-degree price discrimination
• B) Second-degree price discrimination
• C) Uniform price discrimination
• D) First-degree price discrimination

In monopolist market, a new entrant firm should produce where:

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

What characterizes information products in economics?

• A) They are intangible and non-rivalrous in consumption.
• B) They are always excludable.
• C) They are produced by traditional manufacturing processes.
• D) They have physical attributes.

Which of the following goods is merit good?

• A) Food stamps
• B) Subsidized housing
• C) Health care
• D) All of the following goods are merit goods

Which of the following formulas represents net present value?

• A) Present value / Purchase cost
• B) Present value - Purchase cost
• C) Present value + Purchase cost
• D) Present value x Purchase cost

Which of the following can occur at long run market equilibrium according to classical school of thought?

• A) Prices remain at very high level.
• B) All of the given options are correct.
• C) Factors of production must be unemployed.
• D) People are unemployed voluntarily.

If the monopolist earns profit then government can regulate this situation through:

• A) Both taxes and subsidies
• B) Subsidies
• C) Taxes
• D) None of the given options is true

In which of the following oligopoly model prices will tend to be very rigid?

• A) Cournot
• B) Stackelberg
• C) Bertrand
• D) kinked demand curve

Due to positive demand shock, labor demand curve:

• A) Shifts upward.
• B) Shifts downward.
• C) Remains unchanged.
• D) Becomes vertical.

Adam Smith's Invisible Hand Theory states that:

• A) People are involuntarily unemployed in the economy.
• B) Government intervention is required for efficient regulation of economy.
• C) Market mechanism produces efficient outcomes for economy.
• D) Long run market equilibrium always occur below the full employment level.

Which of the following statements best describes the relationship between the Marginal Disutility of Work(MDUW) and leisure?

• A) As MDUW increases, the demand for leisure increases.
• B) As MDUW increases, the desire for leisure decreases.
• C) MDUW and leisure are unrelated concepts.
• D) MDUW has no impact on the desire for leisure.

Which of the following is a key feature that distinguishes monopolistic competition from perfect competition?

• A) The level of government intervention
• B) The absence of barriers to entry
• C) The number of firms in the market
• D) The homogeneity of products

In monopolistic competition, there are:

• A) Many sellers and one buyer
• B) One seller and one buyer
• C) Many sellers and many buyers
• D) Many buyers and one seller

For a monopolist, changes in demand will lead to changes in:

• A) All of the given options.
• B) Output with no change in price.
• C) Price with no change in output.
• D) Both price and quantity.

Which of the followings is true for monopolists as compared to perfectly competitive market?

• A) Monopolists produce lower quantities at higher prices
• B) Monopolists produce higher quantities at higher prices
• C) Monopolists produce higher quantities at lower prices
• D) Monopolists produce lower quantities at lower prices