CBSE Class 12 Economics Non Competitive Markets MCQs Set 01

Question : Measures to improve the adverse balance of payment includes:
(a) Currency devaluation
(b) Import substitution
(c) Exchange control
(d) All of the above

Answer :  D

Question : Monopolistic competition differs from perfect competition primarily becaus—
(a) in monopolistic competition firms can differentiate their products.
(b) in perfect competition firms can differentiate their products.
(c) in monopolistic competition entry into the industry is blocked.
(d) in monopolistic competition there are relatively few barriers to entry.

Answer : A

Question : When there is unfavourable balance of trade?
(a) X > M
(b) X = M
(c) X < M
(d) None of these

Answer :  C

Question : The firm and the industry are one and the same in:
(a) Monopolistic competition
(b) Monopoly
(c) Duopoly
(d) Oligopoly

Answer :  B

Question : Which items are included in the Balance of Payments?
(a) Visible Items
(b) Invisible Items
(c) Capital Transfers
(d) All the above

Answer :  D

Question : The demand curve of Oligopoly is?
(a) Kinked
(b) Vertical
(c) Horizontal
(d) Rising left to Right

Answer :  A

Question : Under monopoly form of market, TR is maximum when
(a) MR is maximum
(b) MR < 0
(c) MR > 0
(d) MR is zero

Answer :  D

Question : Market which has two firms is known as
(a) Duopoly
(b) Monopolistic Competition
(c) Oligopoly
(d) None of These

Answer :  A

Question : One characteristic not typical of Oligopolistic industry is its:
(a) Horizontal demand curve.
(b) Too much importance to non-price competition.
(c) Price leadership.
(d) A small number of firms in the industry.

Answer : A

Question : In perfect competition, a company earns an abnormal profit when average revenue exceeds the?
(a) Total revenue
(b) Average cost
(c) Total fixed cost
(d) Marginal revenue

Answer :  B

Question : Which one is a merit of the flexible exchange rate?
(a) Simple System
(b) Continuous Adjustments
(c) Improves Balance of Payments
(d) All the above

Answer :  D

Question : In perfect competition, when the marginal revenue and marginal cost are equal, profit it?
(a) Zero
(b) Average
(c) Maximum
(d) Negative

Answer :  C

Question : Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:
(a) Likely to rise
(b) Likely to fall
(c) Likely to rise and fall both
(d) Not affected

Answer :  A

Question : Which market have characteristic of product differentiation
(a) Monopolistic competition
(b) Oligopoly
(c) Monopoly
(d) Perfect competition

Answer :  A

Question : The market where the national currencies are traded for one another is known as ________
(a) Domestic exchange market
(b) Foreign exchange market
(c) Bazaar
(d) Shop

Answer :  B

Question : Which one is the item of the Current Account?
(a) Import of Visible Items
(b) Expenses of Tourists
(c) Exports of Visible Items
(d) All the above

Answer :  D

Question : In the monopolistic market, which curves lie below the demand curve and slopes downward?
(a) Marginal cost
(b) Average cost
(c) Average revenue
(d) Marginal revenue

Answer :  A

Question : In monopolistic competition the goods are.
(a) Durable
(b) Differentiated
(c) Heterogeneous
(d) Homogeneous

Answer :  B

Question : What is the cause of the devaluation of any country’s currency?
(a) Increase in the domestic inflation rate
(b) Domestic real interest rates are less than foreign interest rates
(c) Much increase in the income
(d) All of these

Answer :  D

Question : Which market has characteristics of product differentiation
(a) Monopolistic competition
(b) Oligopoly
(c) Monopoly
(d) Perfect competition

Answer : A

Question : Hybrid in management of fixed and flexible exchange rate is known as ________
(a) Managed to float
(b) Crawling Peg
(c) Wider Bands
(d) None of these

Answer :  A

Question : A monopolist is a price
(a) Acceptor
(b) Taker
(c) Giver
(d) Maker

Answer :  D

Question : When was the gold standard abandoned?
(a) 1930’s
(b) 1920’s
(c) 1940’s
(d) 1950’s

Answer :  B

Question : The demand curve of a monopoly firm will be——————
(a) upward sloping
(b) downward sloping
(c) horizontal
(d) vertical

Answer : B

Question : Cartels exist in.Oligopoly
(a) Duopoly
(b) Monopoly
(c) Perfect competition
(d) None of these

Answer :  B

Question : Price discrimination can take place only in
(a) Perfect competition
(b) Oligopoly
(c) Monopolistic competition
(d) Monopoly

Answer :  D

Question : Oligopoly having identical products is known as 
(a) Pure oligopoly
(b) Collusive oligopoly
(c) Independent oligopoly
(d) None of above

Answer :  A

Question : Which of the following is not a characteristic feature of imperfect competition?
(a) Prices vary from seller to seller
(b) All the products are homogeneous
(c) Profits of the seller is included in the price
(d) None of above

Answer :  B

Question : Under which of the following forms of market structure a firm has no control over the price of its product?
(a) Monopoly
(b) Perfect competition
(c) Oligopoly
(d) Monopolistic competition

Answer :  B

Question : The concept of the supply curve is relevant only for?
(a) Oligopoly
(b) Monopoly
(c) Monopolistic Competition
(d) Perfect Competition

Answer :  D

HOTs

Question. The demand curve of Oligopoly is?
1. Kinked
2. Vertical
3. Horizontal
4. Rising left to Right
Answer : Kinked

Question. In perfect competition, when the marginal revenue and marginal cost are equal, profit it?
1. Zero
2. Average
3. Maximum
4. Negative
Answer : Maximum

Question. In perfect competition, a company earns an abnormal profit when average revenue exceeds the?
1. Total revenue
2. Average cost
3. Total fixed cost
4. Marginal revenue
Answer : Average cost

Question. When a negative sloping straight-line demand curve, the total revenue curve is.
1. A rectangle hyperbola
2. Convex to the original
3. An inverted vertical parabola
4. Concave to the origin
Answer : An inverted vertical parabola

Question. Cartels exist in.
1. Oligopoly
2. Duopoly
3. Monopoly
4. Perfect competition
Answer : Monopoly

Question. In monopolistic competition the goods are.
1. Durable
2. Differentiated
3. Heterogeneous
4. Homogeneous
Answer : Differentiated

Question. Which market has characteristics of product differentiation
1. Monopolistic competition
2. Oligopoly
3. Monopoly
4. Perfect competition
Answer : Monopolistic competition

Question. Oligopoly that had identical product is known as.
1. Pure oligopoly
2. Collusive oligopoly
3. Independent oligopoly
4. None of the above
Answer : Pure oligopoly

Question. Explain the effect of a ‘price ceiling’.
Answer : The direct effect of a price ceiling may be termed as black marketing. It is a state, where the product under the government’s authority is illegally sold at higher rates than the price fixed by the government. It might be possible when a buyer is willing to pay in higher rates for the product than not to buy.

Question. A Market for a good is in equilibrium. Demand for good ‘increases’. Explain the chain effects of this change.
Answer : The chain effects of this change are
• When the price is constant, surplus demand emerges.
• This also increases the competition among the buyers insisting them to raise the price
• A rise in the price of a product cause fall or decrease in the demand and expansion or rise in supply
• The cost of the product continues to increase until the market is in balanced at a greater price.