economics

The most important cost curve for the firm is?

A. MC B. AC C. TC D. FC Correct Answer: Option B B. AC Explanation Average cost shows the cost…

6 years ago

The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to?

A. Economies of scale B. Money cost C. Opportunity cost D. Cost functions Correct Answer: Option A A. Economies of…

6 years ago

Restrictive monetary policy is designed to curtail aggregate demand and to overcome?

A. Deflation B. Reinflation C. Disinflation D. Inflationary gap Correct Answer: Option D D. Inflationary gap Explanation Restrictive monetary policy…

6 years ago

An instrument used by the central bank to fix commercial and merchant banks total credit to the domestic economy is?

A. monetary policy B. fiscal policy C. credit ceiling D. open market operation Correct Answer: Option C C. credit ceiling…

6 years ago

An economic condition in which much reduced economic activity co-exists with inflation is referred to as?

A. stagflation B. inflationary spiral C. slump inflation D. inflationary gap Correct Answer: Option C C. slump inflation Explanation An…

6 years ago

The money market equilibrium is defined as?

A. when the demand and supply of money are equal B. when demand is greater than supply of money C.…

6 years ago

A method of analysis that draws conclusions from data rather than general Principles already known is?

A. Deductive reasoning B. Inductive reasoning C. Normative reasoning D. Positive reasoning Correct Answer: Option B B. Inductive reasoning Explanation…

6 years ago

The arithmetic mean of 5, 8, 10, 15, 24 and 28 is?

A. 145 B. 15 C. 90 D. 6 Correct Answer: Option B Explanation Arithmetic Mean = ∑X N where N…

6 years ago

An economy in which the whole income is not consumed is referred to as?

A. Frugal economy B. Spend-thrift economy C. Capitalist economy D. Mixed economy Correct Answer: Option A A. Frugal economy Explanation…

6 years ago

The method obtained by adding all the reward of factors of production in national income is?

A. income approach B. expenditure approach C. value added method D. output approach Correct Answer: Option A A. income approach…

6 years ago