The goods whose features can be determined upon consumption is known as:

• A) Information good
• B) Public good
• C) Merit good
• D) Experience good

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

In which of the followings market structure point of maximum allocative efficiency is achieved?

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

Suppose wheat market operates in a perfectly competitive environment and earns supernormal profit in the short run. In the long run, it will make:

• A) Only normal profits.
• B) Supernormal profits or normal profits.
• C) Only supernormal profits.
• D) Negative profits.

In monopolistic competition, in the long run, firms tend to make:

• A) Losses due to intense competition
• B) Supernormal profits due to product differentiation
• C) Abnormal profits due to barriers to entry
• D) Normal profits, as in perfect competition

Which of the following is a common strategy used by firms in oligopoly to avoid price competition and maintain stable prices?

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

Which of the following is a barrier to entry that can help a monopolist maintain its position?

• A) Promoting perfect competition
• B) Encouraging new firms to enter the market
• C) Allowing open access to essential resources
• D) Patents, copyrights and brand loyalty

WAPDA is the only power supplier in all over Pakistan. If it earns supernormal profits in the short run, it will make:

• A) Only normal profits in the long run.
• B) Supernormal losses in the long run.
• C) Supernormal profits in the long run also.
• D) Losses in the long run.

Suppose the marginal physical product of labor equals Rs. 1500. If the price of good that workers produce is Rs. 50, then the value of marginal product of labour equals:

• A) Rs. 3500
• B) Rs. 7500
• C) Rs. 75000
• D) Rs. 3300

Government can regulate monopolies to ensure that they set a price at the point where:

• A) AR curve intersects the MC curve
• B) MR curve intersects the MC curve
• C) AR curve intersects the MR curve
• D) AR curve intersects the AC curve

Which of the following strategies does a monopolist adopt to discourage new entrants?

• A) Collaborative partnerships
• B) Threat of takeover
• C) Threatening legal action
• D) Public relations campaigns

According to Classical economists, the aggregate demand is:

• A) Vertical.
• B) Upward sloping.
• C) Horizontal.
• D) Downward sloping.

The market for plumbers is characterized by the existence of a large number of similar, but not identical substitutes. This market is best considered as:

• A) A monopoly.
• B) Monopolistic competition.
• C) An oligopoly.
• D) Perfect competition.

According to Classical economists, economy always remains:

• A) Below full employment level.
• B) Stagnant.
• C) At full employment level.
• D) Above full employment level.

Which market structure is characterized by a kinked demand curve?

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

In superstores, sellers will charge lower prices from customers if they buy products in large quantities. This is an example of:

• A) Limit pricing.
• B) 2nd degree price discrimination.
• C) 1st degree price discrimination.
• D) 3rd degree price discrimination.

According to classical economics, what is the primary driver of economic growth and stability?

• A) Labor unions and collective bargaining.
• B) A free market, where prices and wages adjust based on supply and demand.
• C) Government intervention and regulation.
• D) Consumer spending and demand.

In cement industry, collusion of different firms depends on:

• A) Implementation of antitrust laws.
• B) Existence of price leader.
• C) All of the given options are correct.
• D) Stability of the market.

Suppose the marginal physical product of labor equals Rs. 850. If the price of good that workers produce is Rs. 65, then the value of marginal product of labour equals:

• A) Rs. 56550
• B) Rs. 65342
• C) Rs. 59321
• D) Rs. 55250

Which of the followings is an example of information good?

• A) National defense
• B) Software development
• C) Subsidized housing
• D) Food stamps