McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 151. |
An international price discrimination |
| A. | Dumping |
| B. | Bundling |
| C. | Discounting |
| D. | Off loading |
| Answer» A. Dumping | |
| 152. |
The market structure which has large number of sellers selling differentiated product is called |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» A. Perfect competition | |
| 153. |
The market structure which number of sellers is small with interdependence is called |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» D. Oligopoly | |
| 154. |
The condition of short run equilibrium under monopolistic competition is |
| A. | MC=MR |
| B. | AC=MR |
| C. | AC=AR |
| D. | AR=MR |
| Answer» A. MC=MR | |
| 155. |
Kinked demand curve explain which of the following features of oligopoly |
| A. | Selling cost |
| B. | Price rigidity |
| C. | Non price competition |
| D. | Product differentiation |
| Answer» B. Price rigidity | |
| 156. |
Demand curve of a firm under monopolistic competition is |
| A. | Parallel to X axis |
| B. | Parallel to Y axis |
| C. | Downward slopping |
| D. | Upward slopping |
| Answer» C. Downward slopping | |
| 157. |
Which of the following is not a feature of monopolistic competition? |
| A. | Homogenous product |
| B. | Large number of firms |
| C. | Freedom to entry and exit |
| D. | Differentiated product |
| Answer» A. Homogenous product | |
| 158. |
In the long run, a monopolistically competitive firm earn |
| A. | Abnormal profit |
| B. | loss |
| C. | Normal profit |
| D. | Differentiated profit |
| Answer» C. Normal profit | |
| 159. |
In the short run, a monopolistically competitive firm can have |
| A. | Abnormal profit |
| B. | loss |
| C. | Normal profit |
| D. | Any of the above are possible |
| Answer» D. Any of the above are possible | |
| 160. |
Selling cost is a feature of |
| A. | Monopolistic competition |
| B. | Perfect competition |
| C. | Monopoly |
| D. | Bilateral monopoly |
| Answer» A. Monopolistic competition | |
| 161. |
The concept of group equilibrium is related to |
| A. | Paul M sweezy |
| B. | Joan robinson |
| C. | E H Chamberline |
| D. | E L Edgeworth |
| Answer» C. E H Chamberline | |
| 162. |
The concept of kinked demand curve is related to |
| A. | Paul M sweezy |
| B. | Joan robinson |
| C. | E H Chamberline |
| D. | E L Edgeworth |
| Answer» A. Paul M sweezy | |
| 163. |
Refrigerator company is an example of |
| A. | Oligopoly |
| B. | Perfect competition |
| C. | Monopoly |
| D. | Bilateral monopoly |
| Answer» A. Oligopoly | |
| 164. |
Cross elasticity of demand under monopolistic competition is? |
| A. | Zero |
| B. | Highly elastic |
| C. | Highly inelastic |
| D. | infinite |
| Answer» A. Zero | |
| 165. |
The concept of group equilibrium is related to |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» C. Monopolistic competition | |
| 166. |
Excess capacity is a feature of equilibrium under |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» C. Monopolistic competition | |
| 167. |
Which of the following is an important form collusive oligopoly |
| A. | Bilateral monopoly |
| B. | Monopoly |
| C. | cartel |
| D. | Kinked Oligopoly |
| Answer» C. cartel | |
| 168. |
OPEC is an example of |
| A. | Bilateral monopoly |
| B. | Monopoly |
| C. | cartel |
| D. | Kinked Oligopoly |
| Answer» C. cartel | |
| 169. |
Comparing a monopoly and a competitive firm, the monopolist will |
| A. | produce less at a lower price |
| B. | produce more at a lower price |
| C. | produce less at a higher price |
| D. | produce less at a lower price |
| Answer» C. produce less at a higher price | |
| 170. |
A natural monopoly has a declining ________ over a large range of output |
| A. | long run marginal cost |
| B. | short run marginal cost |
| C. | long run average cost |
| D. | long run marginal cost |
| Answer» C. long run average cost | |
| 171. |
Which form of monopoly control is most advantageous to consumer? |
| A. | price controls |
| B. | quantity controls |
| C. | lump sum tax |
| D. | all the above |
| Answer» A. price controls | |
| 172. |
The market structure Perfect mobility of factors and products is called |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» A. Perfect competition | |
| 173. |
The market structure with Perfect knowledge is called |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» A. Perfect competition | |
| 174. |
The condition of perfect competition is fulfilled when |
| A. | Sellers are large in number |
| B. | Buyers are large in number |
| C. | Commodity produced is homogenous |
| D. | All the above |
| Answer» D. All the above | |
| 175. |
The following are conditions of perfect competition except |
| A. | Sellers are large in number |
| B. | Buyers are large in number |
| C. | Commodity produced is homogenous |
| D. | Commodity produced is differentiated |
| Answer» D. Commodity produced is differentiated | |
| 176. |
The following are conditions of perfect competition except |
| A. | Strong barriers to entry |
| B. | Sellers are large in number |
| C. | Commodity produced is Homogenous |
| D. | Buyers are large in number |
| Answer» A. Strong barriers to entry | |
| 177. |
The following are conditions of perfect competition except |
| A. | Sellers are large in number |
| B. | Single buyer |
| C. | Commodity produced is homogenous |
| D. | Freedom to Entry and exit |
| Answer» B. Single buyer | |
| 178. |
The condition of short run equilibrium under perfect competition is |
| A. | MC=MR |
| B. | AC=MR |
| C. | AC=AR |
| D. | AR=Selling cost |
| Answer» A. MC=MR | |
| 179. |
The large number of firms producing the same commodity ensure that the individual firm has no control over |
| A. | Price of the commodity |
| B. | The quantity of the commodity |
| C. | Both of the above |
| D. | None of the above |
| Answer» C. Both of the above | |
| 180. |
Individual firm has no control on the price of the commodity in the market is a condition of |
| A. | Perfect competition |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Bilateral monopoly |
| Answer» A. Perfect competition | |
| 181. |
In a Perfect competitive market |
| A. | Firm is the price giver and the industry is a price taker |
| B. | Firm is the price taker and the industry is a price giver |
| C. | Both are price makers |
| D. | Both are price takers |
| Answer» B. Firm is the price taker and the industry is a price giver | |
| 182. |
One of the essential conditions of perfect competition is |
| A. | Product Differentiation |
| B. | Multiplicity of prices for identical product at any one Time |
| C. | Many sellers and few buyers |
| D. | Only one price for identical goods at any one time |
| Answer» D. Only one price for identical goods at any one time | |
| 183. |
Under perfect market conditions the individual firm in the industry has control over the price of the product. |
| A. | Some |
| B. | Full |
| C. | No |
| D. | None of the above |
| Answer» C. No | |
| 184. |
The condition of short run equilibrium under perfect competition is |
| A. | MC=MR |
| B. | MC cuts MR from below |
| C. | MC is rising when it cuts AR |
| D. | All the above |
| Answer» D. All the above | |
| 185. |
Under perfect market conditions mobility of resources and products are |
| A. | Ensured |
| B. | Not ensured |
| C. | Not considered |
| D. | None of the above |
| Answer» A. Ensured | |
| 186. |
A firm under perfect competitions shall be in equilibrium when marginal cost will be equal to marginal revenue and marginal cost curve is still |
| A. | Declining |
| B. | Rising |
| C. | Constant |
| D. | None of the above |
| Answer» B. Rising | |
| 187. |
Cross elasticity of demand under Perfect competition is? |
| A. | Zero |
| B. | Infinitely elastic |
| C. | Highly elastic |
| D. | Highly inelastic |
| Answer» A. Zero | |
| 188. |
Which of the following is not a type of market structure? |
| A. | Competitive monopoly |
| B. | Oligopoly |
| C. | Perfect competition |
| D. | All of the above are types of market structures. |
| Answer» A. Competitive monopoly | |
| 189. |
If the market demand curve for a commodity has a negative slope then the market structure must be |
| A. | perfect competition |
| B. | monopoly |
| C. | imperfect competition |
| D. | The market structure cannot be determined from the information given |
| Answer» D. The market structure cannot be determined from the information given | |
| 190. |
If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then the firm is a |
| A. | a monopolist |
| B. | an oligopolist |
| C. | a perfect competitor |
| D. | a monopolistic competitor |
| Answer» C. a perfect competitor | |
| 191. |
If a firm sells its output on a market that is characterized by a single seller and many buyers of a homogeneous product for which there are no close substitutes and barriers to long-run resource mobility, then the firm is |
| A. | a monopolist |
| B. | an oligopolist |
| C. | a perfect competitor |
| D. | a monopolistic competitor |
| Answer» A. a monopolist | |
| 192. |
If a firm sells its output on a market that is characterized by many sellers and buyers, a differentiated product, and unlimited long-run resource mobility, then the firm is |
| A. | a monopolist |
| B. | an oligopolist |
| C. | a perfect competitor |
| D. | a monopolistic competitor |
| Answer» D. a monopolistic competitor | |
| 193. |
If a firm sells its output on a market that is characterized by few sellers and many buyers and limited long-run resource mobility, then the firm is |
| A. | a monopolist |
| B. | an oligopolist |
| C. | a perfect competitor |
| D. | a monopolistic competitor |
| Answer» B. an oligopolist | |
| 194. |
If one perfectly competitive firm increases its level of output, market supply |
| A. | will increase and market price will fall |
| B. | will increase and market price will rise |
| C. | and market price will both remain constant |
| D. | will decrease and market price will rise |
| Answer» C. and market price will both remain constant | |
| 195. |
Which of the following markets comes close to satisfying the assumptions of a perfectly competitive market structure? |
| A. | The stock market |
| B. | The market for agricultural commodities such as wheat or corn |
| C. | The market for petroleum and natural gas |
| D. | All of the above come close to satisfying the assumptions of perfect competition |
| Answer» D. All of the above come close to satisfying the assumptions of perfect competition | |
| 196. |
A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost and price is |
| A. | greater than average total cost |
| B. | less than average total cost |
| C. | greater than average variable cost |
| D. | less than average variable cost |
| Answer» D. less than average variable cost | |
| 197. |
The market demand curve for a perfectly competitive industry is QD = 12 - 2P. The market supply curve is QS = 3 + P. The market will be in equilibrium if |
| A. | P = 6 and Q = 9 |
| B. | P = 5 and Q = 2 |
| C. | P = 4 and Q = 4 |
| D. | P = 3 and Q = 6 |
| Answer» D. P = 3 and Q = 6 | |
| 198. |
Which of the following is a barrier to entry that typically results in monopoly? |
| A. | The firm controls the entire supply of a raw material |
| B. | Production of the industry\s product is subject to economies of scale over a broad range of output |
| C. | Production of the industry\s product requires a large initial capital investment |
| D. | The firm holds an exclusive government franchise |
| Answer» C. Production of the industry\s product requires a large initial capital investment | |
| 199. |
In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is |
| A. | greater than average total cost |
| B. | less than average total cost |
| C. | greater than average variable cost |
| D. | less than average variable cost |
| Answer» D. less than average variable cost | |
| 200. |
A natural monopoly refers to a monopoly that is defended from direct competition by |
| A. | economies of scale over a broad range of output |
| B. | a government franchise |
| C. | control over a vital input |
| D. | a patent or copyright |
| Answer» A. economies of scale over a broad range of output | |
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