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

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

If a grocery store offers 1 pack of Express surf powder for Rs.1500 and two packs of Express surf powder for Rs.2800, it reflects that the grocery store is engaging in:

• A) Limit pricing
• B) First degree price discrimination
• C) Third degree price discrimination
• D) Second degree price discrimination

What is a characteristic of monopolists' profits in comparison to perfectly competitive firms?

• A) Monopolists earn subnormal profits
• B) Both earn equal profit
• C) Monopolists earn normal profits
• D) Monopolists earn supernormal profits

Differentiated products in monopolistic competition mean that:

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

According to Keynesian economics, what was the primary driver of economic downturns such as the Great Depression?

• A) Overproduction and excess supply in the market.
• B) Government intervention and regulation.
• C) Lack of consumer spending and effective demand.
• D) A surplus of available jobs in the labor market.

Adam Smith's Invisible Hand Theory states that:

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

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

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

Suppose a firm hires five workers and offers them to pay Rs. 350 for 6 hours. Later on, firm decides to increase working hours instead of hiring new workers. As working hours increase, the wage rate:

• A) Decreases.
• B) First decreases then increases.
• C) Remains unchanged.
• D) Increases.

To hire the next worker, the firm pays Rs.50. This Rs.50 is the:

• A) Marginal product
• B) Marginal input cost.
• C) Marginal revenue product.
• D) Marginal revenue.

Public goods are characterized by which two key attributes?

• A) Non-rivalry and excludability
• B) Rivalry and excludability
• C) Rivalry and non-excludability
• D) Non-rivalry and non-excludability

Which of the following would cause the short run aggregate supply curve to shift to the left, but have no effect over the long run aggregate supply?

• A) The amount of factors of production increase
• B) Prices of inputs increase
• C) The amount of factors of production decrease
• D) Prices of inputs decrease

For a firm buying labor competitively, the marginal input cost is equal to the:

• A) Wage.
• B) Price of output.
• C) Interest rate.
• D) Cost of raw materials.

The equilibrium point in the labor market occurs when:

• A) The supply and demand curves for labor intersect.
• B) Employers have complete control over wages.
• C) Labor unions dictate the terms of employment.
• D) The wage rate is set by government regulations.

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.