Deck 9: Money and Market Structures

Question 1

The marker structure in which number of sellers is small with interdependence is called

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

Answer 1

Oligopoly

Question 2

The cost incurred to alter the position or slope of demand curve is known as

A)Marginal cost
B)Selling cost
C)Alternate cost
D)Additional cost

Answer 2

Selling cost

Question 3

Which of the following is a form collusive oligopoly

A)Bilateral monopoly
B)Monopoly
C)cartel
D)Kinked Oligopoly

Answer 3

cartel

Question 4

In the long run, which of the following is applicable to a firm under monopolistic competition

A)AR = AC
B)AR > AC
C)AR < AC
D)AR = MC

Question 5

A discriminating monopolist will charge a higher price from which group of customers?

A)Group with more elastic
B)Group with less elastic
C)Group with Unitary Elastic
D)Group with Infinitely Elastic

Question 6

Perfect price discrimination means that every customer ____________

A)buys the same amount
B)pays the same price
C)contributes the same revenue
D)pays what she thinks the product is worth

Question 7

Supernormal profit refers to

A)High proportion of net profit
B)Minimum necessary profit to induce an entrepreneur to remain in business
C)Unexpectedly high Profit
D)Residual surplus

Question 8

Which one of the following is related to the commodity money

A)Stones
B)Cattles
C)Grains
D)All of the above

Question 9

Which of the following is not related to commodity money

A)All commodities were not uniform in quality
B)It is difficult to store and prevent the loss of value
C)They lacked portability
D)There was no problem of coincidence of wants

Question 10

Find the odd man out with reference to money

A)Copper
B)Silver
C) Cattles
D)Gold

Question 11

Match the following A B1. (i) Commodity money (i) Currency2. (ii) Metallic money (ii) Cheque3. (iii) Paper money (iii) Gold4. (iv) Credit money (iv) Bows and arrowsCodes;

A)(i) (ii) (iii) (iv)
B)(i) (iii) (ii) (iv)
C)(iv) (iii) (ii) (i)
D)(iv) (iii) (i) (ii)

Question 12

Which of the following is not correctly matched

A)Bows and arrows - used as money in the hunting society
B)Cattles - used as money in the pastoral society
C)Grains - used as money by the agricultural society
D)Gold and silver coins - used as money in which the face value is greater than its

Question 13

Assertion (A): Necessity led to the invention of money Reason(R) : Barter system failed to perform the major functions of money

A)(A) is true but (R) is false.
B)Both (A) and (R) are false
C)Both (A) and (R) are true and (R) is the correct explanation of (A)
D)Both (A) and (R) are true but (R) is not the correct explanation of (A)

Question 14

Which one of the following is an example of "fiat money"

A)Precious stones
B)Grains
C)Gold coins
D)Currency notes

Question 15

In the case of paper currency

A)Intrinsic value and face value are equal
B)Intrinsic value is less than face value
C)Intrinsic value is greater than face value
D)None of the above

Question 16

The most liquid form of all assets is

A)Bonds
B) Debentures
C)Bill of exchange
D)Currency notes

Question 17

In India the standard money is

A)Gold coins
B)Rupee
C)Dollar
D)Paisa

Question 18

In the case of a 'full bodied money'

A)Intrinsic value is less than face value
B)Intrinsic value is equal to face value
C)Intrinsic value is greater than face value
D)None of the above

Question 19

In the case of a 'token money'

A)Face value is less than the metal value
B)Face value is equal to the metal value
C)Face value is greater than the metal value
D)None of the above

Question 20

Demand for money arises from

A)Money acts as a medium of exchange
B)Money acts as a store of value
C)Both A and B
D)Neither A nor B

Question 21

Cost - push inflation arises due to

A)Rise in wages
B)Rise in profit
C)Rise in the prices of raw materials
D)All of the above

Question 22

Which of the following is a concept of 'broad money'

A)M1
B)M2
C)M3
D)All of the above

Question 23

In the Quantity Theory of Money Fischer states that, while other things remains the same,

A)Price level varies directly with the quantity of money
B)Price level varies inversely with the quantity of money
C)Value of money varies directly with the quantity of money
D)None of the above

Question 24

Inflation is a situation where

A)Prices are falling
B)Value of money is falling
C)Value of money is rising
D)All of the above

Question 25

In the case of 'creeping inflation' prices are rising at

A)Less than 3% per month
B)Less than 3% per annum
C)Around 5% per month
D)Around 5% per annum