A. AP is at its minimum B. ACMP 3, Consider the production function Q-f(K,L), where K is capital and L is labor. If MPAP, then the firm must be operating in: A. Stage III B. Stage II C. Stage I D. Stage IV 4 7 Which one of the following is wrongly combined? A. Duopoly-two buyer B. Monopsony-only one buyer ~ C. Perfectly competitive -Homogenous product D. Oligopoly-A few buyer 5. Which of the following is correct statement about oligopoly markets? A. There is a low degree of interdependence among firms in an oligopoly market B. There is no non-price competition in an oligopoly market C. Products in an oligopoly market are always homogeneous x D. Firms is oligopoly markets are highly interdependent 6. Perfectly competitive firm can maximize a profit when: A. MC=MR, where MC is falling B. MC=MR, where MR is rising C. MC=MR, where MC is rising D. MC=MR, where MR is Falling 7. What is the difference between real GDP and Nominal GDP? A. Real GDP is measuring at current market price x B. Nominal GDP is truly reflect the performance economic activity C. Real GDP is affected by the change in price D. Nominal GDP measuring at current market price 8. Which of the following must be included in estimation of GDP of Ethiopia for the 2013 E.C Ethiopian fiscal year? A. The sales value of the house constructed in 2013 E.C B. The resale value of house built before 2013E.C C. All the Transfer payment in 2013 E.C D. The sales of used machines and factories in 2013 E.C 9. What will eventually happen after an economy has reached depression? A. Peak B. Recession C. Trough D. Recovery 10. -Which of the following types of inflation would result if the price level roses because of an increase in the price of raw materials