Question 1

Equilibrium literally means:

Accepted Answer

A) balance 
B) imbalance 
C) change 
D) none of these

Question 2

Existence of large number of buyers and sellers and homogenous product is a feature of :

Accepted Answer

A) monopoly 
B) duopoly 
C) perfect competition 
D) oligopoly

Question 3

The demand curve for labour under perfectly competitive market is

Accepted Answer

A) downward sloping 
B) horizontal straight line 
C) upward sloping 
D) none of the above

Question 4

A profit maximizing firm under a perfectly competitive market employs more and more variable input labour until

Accepted Answer

A) mrpl  mel = w 
C) mrpl = mel = w 
D) none of the above

Question 5

In the case of price leadership by the dominant firm all the firms in the purely oligopolistic industry will produce their best level of output

Accepted Answer

A) always 
B) never 
C) some times 
D) often

Question 6

In Chamberlin and Kinked demand curve model, the oligoposist

Accepted Answer

A) recognize their interdependence 
B) do not collude 
C) tend to keep prices constant 
D) all of the above

Exam 5: Microeconomics Concepts and Markets

Equilibrium literally means: