21-When the government imposes a binding floor price on acompetitive market that is more than the equilibrium price, it isthe situation of:Negative marketSurplus of goodNeithershortage nor surplusShortage of good

Question 22

Identify one of the TRUE statements under which thetechnological efficiency occurs:Only IOnly III Only IIAll of the given options

I. When efficiency is improved by allocation of moreresources

II. When output cost is minimized by least combination choice ofproduction

III. When feasible technology maximize output at givenresources

Choose the answer from the given options:

Question 23

The statement that is expressed in the form of hypothesis isknown as:Negative statementPositive statementScientificstatementNormative statement

Question 24

When the owner uses his own building for production purpose andno rental payment is made for their use, it is consideredas:Free resourceOpportunity costImplicit costExplicitcost

Question 25

Which one of the following is RELEVANT statement with regard toinferior goods?The demand for inferior goods are notaffected by change in incomeDemand for inferior goods decreases ifthere is no change in incomeThe demand for inferior goods increasesas income increasesThe demand for inferior goods decreases asincome increases

Question 26

The price of Fruits in a market is RO 5 per Kg and the demand is400Kgs. When price decreased to RO 4 per Kg, then the demandchanged to 520 Kgs. What will be the price elasticity ofdemand?0.920.501.50.66

Question 27

Identify which one of the following is related to the issues ofmacroeconomics?The hiring decisions that a companymakes The effect of increasing the aggregate supply The purchasingdecisions that an individual consumer makesThe effect of anincrease in the tax on oil sales

Question 28

It is normally seen that a demand shall be elastic when theprice elasticity of the demand is:Equal to oneEqual toZeroBetween 0 and 1More than one

Question 29

Identify one of the following market structures where sellershave no control over the prices:MonopolisticcompetitionOligopolyPerfect competitionMonopoly

Question 30

Ahmed is working as production manager. Which one of thefollowing formula he can use to find the variablecost?Total cost - Fixed costTotal cost - MarginalcostTotal cost - Average Fixed costTotal cost – Average Totalcost

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