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1. In economics, the long run is observed as the time period inwhich we find: 0
All factors of production are fixed
At least one of the factors of production is fixed
All factors of production are variable
Profits are negative
2. Rise in the price of complementary goods leadsto:
Increase in demand
Extension of demand
Decrease in demand
Contraction of demand
3. Identify which one of the following is related to the issuesof macroeconomics?
The purchasing decisions that an individual consumer makes
The effect of increasing the aggregate supply
The effect of an increase in the tax on oil sales
The hiring decisions that a company makes
4. Under which one of the following situations an equilibriumprice falls?
When supply decreases and demand remains same
When demand decreases and supply remains same
None of the given options
When demand increases and supply remains same
5. In the analysis of its elasticity, if the demand for product“A” increases when the price of product “B” decreases, then thoseproducts are:
Substitute products
Independent products
Complementary products
Inferior products
6.
Identify at which one of the following prices the freeenterprise the economy has important allocative and distributivefunctions:
Equilibrium price
Floor price
Ceiling price
None of the given options
7.
Which one of the following is NOT COSTRAINTS in achievingeconomic efficiency?
Output efficiency
Customer buying plan
Market prices
Market prices
8.Which one of the following market structure has aperfectly elastic demand curve?
Monopolistic competition
Perfect competition
Oligopoly
Monopoly
9. Identify one of the following market structures where sellershave no control over the prices:
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
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