Market-2

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35. Match the characteristics with their market structure-
(i) Difficult entry (often due to economies of scale)
(ii) Can sell as much as it can at market price
(A) (i) Monopolistic Competition, (ii) Pure Monopoly
(B) (i) Pure Monopoly, (ii) Oligopoly
(C) (i) Oligopoly, (ii) Pure Competition
(D) (i) Pure Competition, (ii) Oligopoly
Ans. (C)

36. Match the characteristics with their market structure-
(i) MC = Price
(i) Firm will tend to set output so that it earns maximum profits.
(A) (i) Pure Competition, (ii) Pure Monopoly
(B) (i) Pure Monopoly, (ii) Monopolistic Competition
(C) (i) Oligopoly, (ii) Monopolistic Competition
(D) (i) Pure Competition, (ii) Oligopoly
Ans. (A)

37. In perfect competition _____.
(A) Products can be similar or different
(B) Producer can control price by controlling production
(C) Demand curve is perfectly elastic
(D) All firms make economic profit in the long run
Ans. (C)

38. Match the characteristics with their market structure:
(i) demand will tend to be inelastic
(ii) Firm has control over quantity of output but it must take into account reactions of competitors
(A) (i)Pure Monopoly, (ii) Oligopoly
(B) (i)Pure Monopoly, (ii) Monopolistic Competition
(C) (i)Pure Competition, (ii) Oligopoly
(D) (i)Monopolistic Competition, (ii) Pure Competition
Ans. (A)

39. Match the characteristics with their market structure:
(i) MR = MP
(ii) Elasticity of demand depends on pricing policies of rivals
(A) (i) Pure Monopoly, (ii) Monopolistic competition
(B) (i) Pure competition, (ii) Oligopoly
(C) (i) Pure competition, (ii) Pure Monopoly
(D) (i) Pure Monopoly, (ii) Oligopoly
Ans. (B)

40. Match the characteristics with their market structure:
(i) Price > MC in both short and long run
(ii) Faces highly elastic demand
(A) (i) Monopolistic competition, (ii) Pure competition
(B) (i) Pure Monopoly, (ii) Monopolistic competition
(C) (i) Pure competition, (ii) Monopolistic competition
(D) (i) Oligopoly, (ii) Pure competition
Ans. (A)

41. Match the characteristics with their market structure:
(i) A single, homogeneous product with no close substitutes
(ii) Few sellers with interdependent pricing and quantity decision
(A) (i) Pure Competition, (ii) Monopolistic Competition
(B) (i) Pure Monopoly, (ii) Monoplolistic Competition
(C) (i) Oligopoly, (ii) Pure Competition
(D) (i) Pure Monopoly, (ii) Oligopoly
Ans. (D)

42. Match the characteristics with their market structure:
1. Firm has control over quantity of output but it must take into account reactions of competitors.
2. Firm will tend to set output so that it earns maximum profits.
(A) 1. Oligopoly, 2. Pure competition
(B) 1. Monopolistic competition, 2. Oligopoly
(C) 1. Pure Monopoly, 2. Pure competition
(D) 1. Oligopoly, 2. Pure Monopoly
Ans. (D)

43. Match the characteristics with their market structure:
(i) Expand output until MC = MR
(ii) Elasticity of demand depends on pricing policies of rivals
(A) (i) Pure competition, (ii) Pure Monopoly
(B) (i) Pure Monopoly, (ii) Monopolistic competition
(C) (i) Pure competition, (ii) Oligopoly
(D) (i) Monopolistic competition, (ii) Oligopoly
Ans. (D)

44. Which is the best for any firm?
(A) Increase in profit
(B) Decrease in selling
(C) Market monopoly
(D) Decrease in production
Ans. (A)

45. Bilateral Monopoly refers to the market situation of–
(A) Two sellers, Two buyers
(B) One seller, Two buyers
(C) Two sellers, One buyer
(D) One seller, One buyer.
Ans. (D)

46. The Extreme forms of market are-
(A) Perfect Competition, Monopolistic Competition
(B) Perfect Competition, Oligopoly
(C) Oligopoly, Monopoly
(D) Perfect Competition, Monopoly.
Ans. (D)

47. The New firms are not allowed in market with.
(A) Perfect competition
(B) Oligopoly
(C) Monopolic competition
(D) Monopoly.
Ans. (D)

48. Perfect Market situation will be situated when-
(A) When firms are independent
(B) When large number of buyers & sellers are present
(C) When large number of sellers & less number of payers are there
(D) When less number of buyer are there.
Ans. (B)

49. Under Perfect Competition who is Price Taker.
(A) Buyer
(B) Business
(C) Government
(D) Firm.
Ans. (D)

50. The Theory of “Monopolistic Competition” was given by–
(A) John Robinson
(B) Edward Chamberlin
(C) John Bates Clarke
(D) Joseph Schumpeter
Ans. (B)

51. Which market firms allow free entry and exit of firms?
(A) Perfect and Monopolistic
(B) Perfect and Oligopoly
(C) Oligopoly and Monopoly
(D) Monopoly and Monopolistic
Ans. (B)

52. Kinked demand curve is a feature of–
(A) Monopoly
(B) Oligopoly
(C) Monopsony
(D) Duopoly
Ans. (B)

53. In which market structure is the demand curve of the market is represented by the demand curve of the firm?
(A) Monopoly
(B) Oligopoly
(C) Duopoly
(D) Perfect Competition
Ans. (A)

54. The most distinguishing feature of oligopoly is–
(A) Number of firms
(B) Interdependence
(C) Negligible influence on price
(D) Price leadership
Ans. (B)

55. The degree of monopoly power is to be measured in terms of the firm’s–
(A) Normal profit
(B) Supernormal profit
(C) Both normal and supernormal profit
(D) Selling price
Ans. (D)

56. Under which market condition do firms have excess capacity?
(A) Perfect competition
(B) Monopolistic competition
(C) Duopoly
(D) Oligopoly
Ans. (B)

57. The situation in which total revenues equals total cost is known as–
(A) Monopolistic competition
(B) Equilibrium level of output
(C) Break even point
(D) Perfect competition
Ans. (C)

58. Match the following Form of Market Number of sellers and Buyers
1. Oligopoly a. A few big sellers and a large number of buyers
2. Monopoly b. One seller but large number of buyers
3. Perfect Competition c. Large number of sellers and buyers
(A) 1-b, 2-c, 3-a (B) 1-c, 2-a, 3-b
(C) 1-a, 2-b, 3-c (D) 1-b, 2-a, 3-c
Ans. (C)

59. The market structure called monopoly exists where there is exactly ______ seller in any market.
(A) One
(B) Two
(C) Five
(D) Ten
Ans. (A)

60. In which market form, a market or an industry is dominated by a single seller?
(A) Oligopoly
(B) Monopoly
(C) Duopoly
(D) Monopolistic Competition
Ans. (B)

61. When there is only one buyer and one seller of product, it is called _____ situation.
(A) Public monopoly
(B) Bilateral monopoly
(C) Franchised monopoly
(D) Monopsony
Ans. (B)

62. In which market form, a market or industry is dominated by a few firms?
(A) Perfect Competition
(B) Monopoly
(C) Oligopoly
(D) Monopolistic
Ans. (C)

63. In which of the following market forms, a firm does not exercise control over price?
(A) Mixed Competition
(B) Monopoly
(C) Oligopoly
(D) Perfect Competition
Ans. (D)

64. A ___________ deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.
(A) Current Account
(B) Savings Account
(C) Capital Account
(D) Asset Account
Ans. (A)

65. A commodity market has a _________ structure, if there is one seller of the commodity, thecommodity has no substitute, and entry into the industry by another firm is prevented.
(A) Perfect Competition
(B) Monopoly
(C) Oligopoly
(D) Monopolistic Competition
Ans. (B)

66. If the _________firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.
(A) Perfect Competition
(B) Monopoly
(C) Oligopoly
(D) Monopolistic Competition
Ans. (D)

67. Which of the following is a basic characteristic
of ‘Oligopoly’?
(A) Many sellers, many buyers
(B) Few sellers, few buyers
(C) Few sellers, many buyers
(D) Many sellers, few buyers
Ans. (C)

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