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Mr.Vijay

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Submitted By bijay
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Firms that operate in industries with relatively high levels of risk tend to have lower levels of profit.
[pic]True[pic]False
Question2
The monopoly theory of profits argues that restricted entry into an industry tends to keep profits low.
[pic]True[pic]False
Question3
GNP at market price = GNP at factor cost + indirect taxes
[pic]True[pic]False
Question4
Economic profit is equal to total revenue minus all implicit costs.
[pic]True[pic]False
Question5
Price regulates the quantity supplied just as it regulates quantity demanded.
[pic]True[pic]False
Question6
The opportunity cost is the amount of subjective value foregone in choosing one alternative over the next best alternative.
[pic]True[pic]False
Question7
Personal Disposable income = Private income - Saving of private corporate sector net of retained earnings of foreign companies - Corporation tax.
[pic]True[pic]False
Question8
Implicit costs refer to the value of inputs owned and used by a firm.
[pic]True[pic]False
Question9
The theory of the firm holds that the primary goal of a firm is to maximize the discounted present value of the positive difference between the firm's total revenue and the firm's total cost or to minimize the present value of the negative difference between the firm's total revenue and total cost.
[pic]True[pic]False
Question10
The single most important element in managerial economics is the microeconomic theory of the firm.
[pic]True[pic]False
Question11
Net Domestic Product at factor cost = Net domestic product at market prices - indirect taxes + Subsides.
[pic]True[pic]False
Question12
When the price of a product rises, individuals and firms can rearrange their activities in order to supply more of that product to the market, substituting production of the product for the production of other goods. Is this statement true or false?
[pic]True[pic]False

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