Which of the following goods is most likely to be exchanged in a market of local rather than national scope?
University professors
Computer components
Building materials
Jet airplanes
Correct Answer :
C. Building materials
Building materials are traded in locally distinct markets b/c it is very costly to trade it on the national level.}
Related Questions
With firms having cost differences under perfect competition, a firm, which earns normal profit in the long-run is called:
An optimum firm
A representative firm
An oxford firm
A marginal firm
The slope of isocost line (budget line) shows:
Capital labor ratio
Labor wage ratio
Factor price ratio
Factor labor ratio
A firm considering what type of new plant to build is involved in a:
Immediate-run decision
Market period decision
Short-run decision
Long-run decision
An individual consumers demand is not determined by:
Price of the commodity
Price of the substitutes
His household income
Size of countrys population
Microeconomics is also known as:
Price theory
Demand theory
Supply theory
Income theory
In case the two commodities are complements, cross elasticity will be:
Positive
Unitary
Negative
Infinite
Which of the following is not a U shaped curve:
Marginal cost curve
Average variable cost curve
Fixed cost curve
Average cost curve
In second degree price discrimination, monopolist takes away :
All of the consumer surplus
All of the producer surplus
Some part of the consumer surplus
None of them
The long-run AC curve is constructed from:
The minimum points on all short-run AC curves
The lowest points on the short-run MC curve
The minimum points on the short run AVC curves
It has nothing to do with the short-run cost curves
Who developed the concept of Representative Firm?
A.C.Pigou
Alfred Marshal
J.M.Keynes
D.H.Robertson
Which form of market structure is characterized by interdependence in decision-making as between the different competing firms?
Oligopoly
Perfect competition
Imperfect competition
None of the above
The normal long-run average cost curve is influenced by the:
Principle of diminishing returns
Economies and diseconomies of large scale production
Principle of constant return to scale
All of the above
Marshallian approach is also known as:
Cardinal approach
Ordinal approach
Consumer approach
Production approach
In Edgeworth model, price remains:
Constant
On increasing
Independent
Indeterminate
When total product (TP) is maximum:
MP is negative
MP is infinite
MP is zero
None of the above
The slope of budget line shows the price ratios of:
Many goods
Few goods
Two goods
Three goods
In monopoly, new firms:
Can enter and exit
Partially can enter and exit
Cannot enter
None of the above
Utility is:
A subjective concept
An ethical concept
An objective concept
A historical concept
4.The Law of Diminishing Returns according to the modern view, applies to:
Agriculture
All fields of production
Industry
Services
Which is not a central problem of an economy?
What to produce
How to produce
How to maximize private profit
For whom to produce
Discriminating monopoly implies that the monopolist charges different prices for his commodity:
From different groups of consumers
For different uses
At different places
Any of the above
The number of firms in monopolistic competition normally range between:
14 to 28
14 to 80
14 to 38
14 to 60
In case of monopoly, when total revenue is maximum:
MR is positive
MR falls
MR rises
MR is zero
An indifferent curve shows:
That how many utils are obtained from consuming different bundles of commodities
Different collections of two commodities the consumer considers to be of equal value
That if price increases there will be an increases in demand
None of the above
The difference between average cost and average revenue is:
Total profit
Average profit
Net profit
Marginal profit
Who is the author of Choice of Technique?
K.N.Raj
Amartiya Sen
A.C.Pigou
Alfred Marshal
In monopolistic competition, the real differentiation in products is due to difference in:
Style
Consumer
Cost
Material
Who finalized the model of monopolistic competition?
Ricardo
Marshal
Chamberlin
Mrs. Robinson
The right of individuals to control productive resources is known as:
Monopoly
Private property
Workable competition
Oligopoly
Market allocation fundamentally relies upon:
A system of relative prices
A belief that employees work for the good of society
Government ownership of the means of production
Moral incentives to encourage productive efficiency