Q. A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as: Surplus value Quasi-rent Transfer earnings Supernormal profit Answer: Quasi-rent
Q. Which of the following factors forms the basis of the Loan able Funds Theory of Interest? A. Monetary factors B. Psychological factors C. Technical factors D. Monetary and non monetary factors Answer: Monetary and non monetary factors
Q. In the context of the firm as a whole, quasi-rent is defined as the excess of the total receipts over the total: Fixed cost Average cost Fixed and variable cost Variable cost Answer: Variable cost
Q. Economic rent can accrue to: A. Land only B. Capital only C. Specialised technical personnel only D. Any of the factors of production Answer: Any of the factors of production
Q. Under monophony in the labour market, the supply curve of labour facing the firm will be: Upward-sloping to the right Downward-sloping to the right Backward-sloping to the left Horizontal Answer: Upward-sloping to the right
Under monophony in the labour market, the supply curve of labour facing the firm will be Read More »
Q. Which one of the following is not the assumption of the Marginal Productivity Theory of Distribution? A. Homogeneity of a factor B. Perfect competition in the factor market C. All factors, except one, are variable D. Given stock of each factor and full employment Answer: All factors, except one, are variable
Q. With which of the theories of wages is the name of John Stuart Mill associated? A. Marginal productivity theory of wages B. Wages-fund theory C. Subsistence theory of wages D. Iron law of wages Answer: Wages-fund theory
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Q. Which form of market structure is characterised by interdependence in decision-making as between the different competing firms? A. Oligopoly B. Perfect competition C. Imperfect competition D. None of the above Answer: Oligopoly
Q. The Kinky demand curve hypothesis is designed to explain in the context of oligopoly: A. Price and output determination B. Price rigidity C. Price leadership D. Collusion among rivals Answer: Price rigidity
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Q. Which of the following oligopoly models is concerned with the maximization of joint profits? A. Price leadership model B. Bertrand’s model C. Collusive model D. Edge worth’s model Answer: Collusive model
