CBSE Class 12 Economics Market Competition MCQs Set B

Question: In which market product differentiation is found?
a) Pure Competition
b) Perfect Competition
c) Monopoly
d) Monopolistic Competition
Answer: c

Question: The price of a goods in perfect competition is determined by
a) Bargaining
b) Production cost
c) Marginal utility
d) Demand and supply
Answer: d

Question: Which is a basic for the classification of the market?
a) Perfect Competition
b) Zero Competition (Monopoly)
c) Imperfect Competition
d) All the above
Answer: d

Question: The price of a good is determined by
a) Demand
b) Supply
c) Both demand and supply
d) Government
Answer: c

Question: In which market is AR equal to MR?
a) Perfect competition
b) Oligopoly
c) Imperfect competition
d) Monopoly
Answer: a

Question: The market in which there is free entry and exit is
a) Monopolistic competition market
b) Imperfect competition market
c) Perfect competition market
d) None of these
Answer: c

Question: Which determines the equilibrium price?
a) Demand
b) Supply
c) Both (a) and (b)
d) None of the above
Answer: c

Question: Which one is a feature of monopoly?
a) Single Seller and Many Buyers
b) Lack of Close Substitutes
c) Restrictions of New Firm entry
d) All of these
Answer: d

Question: “Price is determined by Demand and Supply.” Whose statement is this?
a) Jevons
b) Walras
c) Marshall
d) None of these
Answer: c

Question: Which one is a feature of monopolistic competition?
a) Differentiated Product
b) Selling Cost
c) Imperfect Knowledge of the Market
d) All the above
Answer: d

Question: The concept of monopolistic competition is given by
a) Hicks
b) Chamberlin
c) Mrs. Robinson
d) Samuelson
Answer: b

Question: What is true for perfect competition market?
a) Price is determined by both Demand and Supply Forces
b) Price is determined by the industry
c) Each firm of the industry is Price-taker
d) All the above
Answer: d

Question: In perfect competition, there is…… profit
a) Normal
b) Maximum
c) Zero
d) None of these
Answer: a

Question: Which statement is correct?
a) In very short period, supply is perfectly inelastic, price is affected by both demand conditions
b) Supply curve elasticity depends on time period
c) Both (a) and (b)
d) None of the above
Answer: c

Question: How many categories of production duration have been made by Marshall on the basis of supply?
a) Two
b) Three
c) Four
d) Seven
Answer: b

Question: In very short period, supply will be
a) Perfectly elastic
b) Perfectly inelastic
c) Elastic
d) None of these
Answer: b

Question: Which of the following is the feature of pure competition?
a) Perfect knowledge of the market
b) Perfect mobility of factors
c) Homogeneity of products
d) All the above
Answer: d

Question: Price of a goods is determined at a point where
a) Demand > Supply
b) Demand < Supply
c) Demand = Supply
d) None of these
Answer: c

Question: Which of the following is correct?
a) Labour demand comes from producer
b) Demand of labour depends on its productivity
c) Marginal productivity of labour is its maximum wage
d) All the above
Answer: d

Question: What does a monopolist market show?
a) Production process
b) Distribution system
c) Nature of market
d) None of these
Answer: c

Question: The price of a good is determined by
a) Demand
b) Supply
c) Government
d) Both demand and supply
Answer: d

Question: According to which economist “Price of a commodity is determined by the forces of demand and supply”?
a) Jevons
b) Valros
c) Marshall
d) None of these
Answer: c

Question: When the price equals the equilibrium price and quantity bought and sold equals the equilibrium quantity, it is called
a) Consumer equilibrium
b) Market equilibrium
c) Mechanized equilibrium
d) Suppliers’ Equilibrium
Answer: b

Question: Buyer demands a commodity because it possesses
a) Utility
b) Satisfaction
c) Purchasing power
d) None of the above
Answer: a

Question: In very short period, supply will be
a) Perfectly elastic
b) Perfectly inelastic
c) Elastic
d) None of these
Answer: b

Question: Price discrimination is found in which market?
a) Pure Competition
b) Perfect Competition
c) Monopoly
d) Monopolistic Competition
Answer: c

Question: Price of a commodity is determined at a point where
a) Demand exceeds
b) Supply exceeds
c) Demand equals supply
d) None of these
Answer: c

Question: Market price is found in
a) Short period market
b) Long period market
c) Very long period market
d) None of these
Answer: a

Question: The price at which Quantity Demanded = Quantity Supplied is
a) Market Price
b) Equilibrium Price
c) Consumer’s Price
d) Supply Price
Answer: b

Question: Minimum support price of wheat is called
a) Price ceiling
b) Price floor
c) Market price
d) Equilibrium price
Answer: b

Question: A seller cannot influence the market price under
a) Perfect Competition
b) Monopoly
c) Monopolistic Competition
d) All of these
Answer: a

Question: When a firm’s Total Revenue = Total Cost, it cannot cover its normal profit
a) False
b) True
c) Can’t say
d) None of these
Answer: a

Question: The market in which there is free entry and exit is
a) Monopolistic competition market
b) Imperfect competition market
c) Perfect competition market
d) None of these
Answer: c

Question: Which of the following is the component of instrument pricing?
a) Rent
b) Wages
c) Interest
d) None of these
Answer: c

Question: ________ and ______ curves tell us about different quantities that are demanded by a consumer at different prices
a) Demand, price
b) Price, supply
c) Demand, supply
d) Supply, output
Answer: c

Question: Administrative price is
a) Price ceiling
b) Price floor
c) Both (a) and (b)
d) None of these
Answer: c

Question: After reaching the saturation point, consumption of additional units of the commodity causes
a) Total utility to fall and marginal utility to increase
b) Total utility and marginal utility both to increase
c) Total utility to fall and marginal utility to become negative
d) Total utility to become negative and marginal utility to fall
Answer: c

Question: Which among the following statement is not true
a) Demand of labor is done by the producer
b) Demand of labor depends on its productivity
c) Marginal productivity of a labor is his maximum wages
d) All of the above
Answer: d

Question: How many categories of production duration have been made by Marshall on the basis of supply?
a) Two
b) Three
c) Four
d) Seven
Answer: b

Question: Which among the following statement is not true:
a) Demand of labor is done by the producer
b) Demand of labor depends upon its productivity
c) Marginal productivity of a labor is his maximum wages
d) All of the above
Answer: d

Question: Market which have two firms are known as:
a) Oligopoly
b) Duopoly
c) Monopsony
d) Oligopsony
Answer: b

Question: Administrative price is:
a) Price ceiling
b) Price floor
c) Both (a) and (b)
d) None of these
Answer: c

Question: Equilibrium price is also called as ______ price
a) ideal
b) optimum
c) supply-demand
d) market clearing
Answer: d

Question: When demand curve is parallel to the X-axis, an increase in supply leads to a ______
a) decrease in quantity demanded
b) increase in quantity demanded and sold
c) change in price
d) none of the above
Answer: b

Question: When demand curve shifts to the right, competition among producers and consumers cause price to
a) rise
b) fall
c) remain constant
d) none of the above
Answer: a

Question: In perfect competition, since the firm is a price taker, the _______ curve is a straight line:
a) Marginal cost
b) Total cost
c) Total revenue
d) Marginal revenue
Answer: d

Question: In which market product differentiation is found?
a) Pure Competition
b) Perfect Competition
c) Monopoly
d) Monopolistic Competition
Answer: c

Question: Which one is a feature of monopolistic competition?
a) Differentiated Product
b) Selling Cost
c) Imperfect Knowledge of the Market
d) All the above
Answer: d

Question: If supply remains constant, a Leftward Shift in demand curve will lead to
a) fall in equilibrium price and quantity bought
b) rise in equilibrium price and quantity bought
c) fall in equilibrium price but increase in demand
d) fall in demand but increase in price of good
Answer: a

Question: Given, AR = 5 and Elasticity of demand = 2 Find MR.
a) +2.5
b) -2.5
c) +1.5
d) +2.0
Answer: a