Question 1

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

Accepted Answer

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

Question 2

Demand for money arises from

Accepted Answer

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 C

Question 3

In India the standard money is

Accepted Answer

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

Question 4

Find the odd man out with reference to money

Accepted Answer

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

Question 5

In the case of a 'token money'

Accepted Answer

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 6

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

Accepted Answer

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

Question 7

Supernormal profit refers to

Accepted Answer

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

In the case of a 'full bodied money'

Accepted Answer

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 9

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

Accepted Answer

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

Question 10

Which of the following is not related to commodity money

Accepted Answer

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 11

Which one of the following is related to the commodity money

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

Which of the following is not correctly matched

Accepted Answer

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 14

Perfect price discrimination means that every customer ____________

Accepted Answer

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 15

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;

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

Inflation is a situation where

Accepted Answer

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

Question 18

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

Accepted Answer

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 19

Cost - push inflation arises due to

Accepted Answer

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

Question 20

The most liquid form of all assets is

Accepted Answer

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

Exam 9: Money and Market Structures