Question

1.Market price = Factor cost______

A. + subsidy + indirect tax.

B. - subsidy - indirect tax.

C. - subsidy + indirect tax.

D. + subsidy - indirect tax.

2.Which of the following variables should be stabilised to promote investors confidence?

A.Export growth rate.

B.Net export.

C.Growth rate.

D.Crime rate.

3.Which of the following characteristic fits a perfect competitive firm?

A.The price is constant.

B.The marginal revenue decreases as output increases.

C.The marginal cost decreases as output increases.

D.It earns abnormal profit in the long run.

Answer 1

1.Market price = Factor cost- subsidy + indirect tax.

2.Which of the following variables should be stabilized to promote investors' confidence?

A.Export growth rate.

3.Which of the following characteristic fits a perfectly competitive firm?

B.The marginal revenue decreases as output increases.