(A) zero, positive, negative
(B) zero, negative, positive
(C) positive, negative, zero
(D) positive, zero, negative
Category: Economics Mcqs
An increase in supply generally _____ price and _____ quantity demanded.
(A) lowers, raises
(B) raises, lowers
(C) lowers, lowers
(D) raises, raises
If there are changes in factors other than a product’s own price that affect the quantity purchased, the phenomena is termed as
(A) Law of upward-sloping demand
(B) Law of downward-sloping demand
(C) shifts in demand
(D) In-equilibrium of supply and demand
When price rises, the quantity demanded generally tends to fall because of:
I. income effect
II. substitution effect
(A) I only
(B) II only
(C) I or II
(D) I and II
A businessman or a company should accept investments that offer rates of return _____ their opportunity costs of capital.
(A) equal to
(B) greater than
(C) less than
(D) related to
A businessman or a company should accept investments that have _____ net present values.
(A) positive
(B) negative
(C) zero
(D) constant
In a perfect competition, maximum profit occurs where marginal revenue equals
(A) price
(B) cost
(C) marginal cost
(D) marginal profit
In a monopolistic competition, a business finds its maximum-profit position where
(A) MR > MC
(B) MR < MC
(C) MR = MC
(D) MR + MC = 1
The term “oligopoly” means
(A) monopoly
(B) few sellers
(C) socialism
(D) many sellers
The conflict of interest between owners of a company and the management of the company is termed as
(A) company dilemma
(B) company trade-off
(C) owner-manager problem
(D) principal-agent problem
