Please answer following questions

SECTION A: MULTIPLE CHOICE QUESTIONS (Total: 10 MARKS) Answer ALL questions. 1. Which one of the following is likely to occur when short-run aggregate supply exceeds aggregate demand? a A decrease in employment. A favourable terms of trade to regulate the production process. An increase in gross domestic product. An increase in the rate of inflation. 2. Which one of the following statements is incorrect? a Monopolists make super-normal profit benefit at the expense of buyers who pay b ) high prices, and potential suppliers who face barriers to entry to the market. Producers make normal profits and information about production techniques is C) freely available in a perfectly competitive market. The quality of goods is likely to be high in oligopoly markets because there is high level of non-price competition and oligopolists have enough profit to afford research and development. d) Monopolistic competition firms engage in vigorous non-price competition, through differentiated. advertising, packaging, promoting brand names because their products are not 3. Which of the following statements is incorrect? Oligopolistic firms produce a substantial fraction of the output of their industry. Monopolistically competitive firms produce differentiated products. A monopoly is the single seller of a product without a close substitute Only a perfectly competitive firm has power to influence the market price for its product. 4. The purchasing power of money decreases as the production decreases price level increases. employment increases. demand increases. Page 2 of 7