Basics of Demand and Supply and Forms of Market Competition – EconomicsBy CACSMockTest / April 26, 2022 275 Basics of Demand and Supply and Forms of Market Competition – Economics 1 / 29 29. Product differentiation is the feature of …………….. Monopoly Oligopoly Monopolistic competition Perfect competition 2 / 29 28. Which of the following is correct regarding perfect competition? Firm is the price maker (ii) AR = MR (iii) MR is linear and parallel to x – axis Only (i) and (ii) Only (i) and (iii) All (i), (ii) and (iii) Only (ii) and (iii) 3 / 29 27. Government fixes the price of critical inputs, which of the following are the critical inputs? Petrol Diesel Fertilizers Coal Kerosene (i), (ii), (iii), (iv) and (v) Only (i), (ii), (iii) and (v) Only (i), (ii) and (iii) Only (i), (ii) and (v) 4 / 29 26. OPEC is an example of: Oligopoly Dipole Monopolistic competition Monopoly 5 / 29 25. What is the shape of the demand curve faced by a firm under perfect competition? Negatively sloped Positively sloped Horizontal Vertical 6 / 29 24. Under law of demand Price of commodity is an independent variable Reciprocal relationship is found between price and quantity demanded All of these Quantity demanded is dependent variable 7 / 29 23. Under which of the following forms of market structure does a firm has no control over the price of its product? Oligopoly Monopolistic competition Perfect competition Monopoly 8 / 29 22. In general speaking, market refers to a place but in economic terms refers to………………… All of the above Place again Internet Product 9 / 29 21. Demand for car decreases due to increase in price. It implies that car and petrol are…………… Substitute goods Complementary goods Inferior goods Normal goods 10 / 29 20. ……….. are defined as economic activities that have positive effect on unrelated third party. Positive Externalities None of these Negative Externalities Both (Positive Externalities) and (Negative Externalities) 11 / 29 19. The reason for the kinked demand curve is that: The oligopolist believe that competitors will follow price cuts but not price rises. None of these The oligopolist believe that competitors will follow output increase but not output. Both 12 / 29 18. Excess supply of a commodity will cause …………….. in its price. Rise No effect Fall Consistency 13 / 29 17. If demand decreases and supply remains constant, equilibrium price will …………….. Constant No affect Moves up Moves down 14 / 29 16. If the price for laptops increases, and relatively the demand for tablets increases then, laptops and tablets are Ceteris Paribus products Substitute products Independent products Complementary products 15 / 29 15. Which of the following are the barriers to entry? All of the above High cost of production Government regulation Product differentiation 16 / 29 14. Monopolist is a …………….. Price motivator Price taker Price dictator Price maker 17 / 29 13. Discriminating monopolist charges a higher price from the market which has a relatively …………….. demand. Perfectly elastic Elastic Greater than 1 Inelastic 18 / 29 12. The perfectly competitive firm can sell its output at …………….. prices. Normal Variable Normal or fixed Fixed 19 / 29 11. …………….. refers to the amount of money which a firm realizes by selling certain units of a commodity . Total revenue Total product Average revenue Marginal revenue 20 / 29 10. Total revenue falls as the price of a good increase if price elasticity of demand is Inelastic Elastic Perfectly Elastic Unitary elastic 21 / 29 9. Kinked demand curve under oligopoly is designed to show: Price rigidity Collusion among rivals Price and output determination Price leadership 22 / 29 8. Goods for which demand rises when the price increases and demand falls when price decreases. Giffen goods Inferior goods Normal goods Superior goods 23 / 29 7. The price of the product depends upon : Both (Demand) and (Supply) Supply Demand Production 24 / 29 6. Which is the other name that is given to the average revenue curve? Indifference curve Profit curve Demand curve Average cost curve 25 / 29 5. Externalities may be: Positive Negative Mixed Both (Positive) and (Negative) 26 / 29 4. When all the firms are functioning with normal profit, …………….. is said to be in equilibrium. Firm None of these Industry Market 27 / 29 3. In the long run, monopolist firm earn …………….. Any of these Normal profit Loss Supernormal profit 28 / 29 2. Which of the following is not the exception to the law of demand? Giffen goods Conspicuous necessities Level of income Future expectations 29 / 29 1. For luxuries, the elasticity is …………….. Equal to 1 Zero More than 1 Less than 1 Your score is LinkedIn Facebook Twitter VKontakte Related
