Principles of Microeconomics.
Past questions 2006/2007.

1. The objective of any rational government is to maximise
a.profit
b. Utility
c. Welfare
d. Wealth

2. Oligopoly is a market with
a. Few sellers
b, many buyers
c. Few buyers
d.many sellers

3.Identify the odd term from the gollowing.
a. Price
b. Transaction
c. Equilibrium
d. Goods and services

4. Market is limited by the extent of
a. Goods ans services
b. Demand
c. Price
d. Production

5.An imperfect market in which there is only one buyer of a commodity is
a. Monopsony
b. Oligopoly
c. Monopoly
d. Duopoly

6. Fixed cost equals.........at zero output.
a. Average cost
b. Marginal cost
c. Average fixed cost
d. Total cost
e. Variable cost

7. Normative economy deals witj
a. What ahould be
b. Facts and not gigured
c. Facts and figures
d. Value judgement

8. Who practice price discrimination.
a. Monopsony
b. Perfect competitive firm
c. Monopoly
d. Oligopoly

9. The slope of ......line is the ratio of the input prices.
a.budget
b.production
c. Elasticity
d. Isoquant
e. None of the above.

10.The conventional allocation of rewards to factors of production waa first propounded by
a. Alfref Marshall
b. Maynard Keynes
c. David Rechardo
d. Milton Friesman