Practice Test

Q1) __________ defines market as, "not any particular market place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such free intercourse with each other that the prices of the same goods tend to equality easily and quickly". Show Answer

Q2) According to_____, " Market means the general field within which, the force determining the price of particular product operate". Show Answer

Q3) _______ explain the term market as " any organization whereby buyers and sellers of a good are kept in close touch with each other". Show Answer

Q4) Which of the following is/ are basic components of market? Show Answer

Q5) ________ refers to a market structure in which a large number of firms produce identical goods and sell them at a uniform price, where firms have the freedom of entry and exit and all the buyers and sellers have full knowledge of the market conditions. Show Answer

Q6) Which of the following is feature of ' Perfect Competition' ? Show Answer

Q7) Which of the following is feature of ' Perfect Competition' ? Show Answer

Q8) Which of the following is feature of ' Perfect Competition' ? Show Answer

Q9) Which of the following is feature of ' Perfect Competition' ? Show Answer

Q10) Which of the following is not a feature of ' Perfect Competition'? Show Answer

Q11) Which of the following is not a condition of perfect competition? Show Answer

Q12) Under which of the following forms of market structure does a firm have no control over the price of its product? Show Answer

Q13) In a perfect competition, product supplied by one firm is a perfect substitute of that supplied by another. Show Answer

Q14) In a perfect competition, every firm in the industry is a price maker. Show Answer

Q15) In a perfect competition, the demand for product of the firm is _______. Show Answer

Q16) In a perfect competition, single buyer or seller may have influence on the price. Show Answer

Q17) In a perfect competition, every buyer and seller may not have knowledge of the market. Show Answer

Q18) In a perfect competition, seller has to incur selling expenses because his product has to be differentiated from the products supplied by other sellers. Show Answer

Q19) Agricultural goods markets depict characteristics close to ______. Show Answer

Q20) Since a perfectly competitive firm is a price taker, it is faced with a straight line demand curve i.e. AR is _______. Show Answer

Q21) What is the shape of the demand curve faced by a firm under perfect competition? Show Answer

Q22) In a perfect competition, the firm will be in equilibrium when _____. Show Answer

Q23) The short run average cost curve (SAC) is ____. Show Answer

Q24) In a perfect competition, the firms have _____. Show Answer

Q25) On account of law of ______, the average variable cost curve is U-shaped. Show Answer

Q26) In a perfect competition operating under long run, no firm is able to earn an abnormal profit. Show Answer

Q27) These short run cost curves (SACs) are also called as _______. Show Answer

Q28) In a perfect competition in long run firm gets equilibrium where it is operating under ____. Show Answer

Q29) For the price-taking firm: ________ Show Answer

Q30) In perfect competition in the long run there will be no ______. Show Answer

Q31) If under perfect completion, the price line lies below the average cost curve, the firm would ______. Show Answer

Q32) In a perfect competition which curve among following will be a straight line? Show Answer

Q33) The term monopoly means a ______. Show Answer

Q34) The monopolist is _______. Show Answer

Q35) A monopoly firm faces a ______ for his product. Show Answer

Q36) Which of the following is feature of 'Monopoly firm'? Show Answer

Q37) Which of the following is not a feature of ' Monopoly firm'? Show Answer

Q38) Which of the following is not a feature of ' Monopoly firm'? Show Answer

Q39) All of the following are characteristics of a monopoly except: _______. Show Answer

Q40) In a monopoly, the monopolist can ______. Show Answer

Q41) According to "total revenue & total cost" approach, a monopoly firm attains equilibrium when the difference between its total revenue and total cost is the ______. Show Answer

Q42) According to "marginal revenue marginal cost approach" approach, a monopoly firm attains equilibrium when _______. Show Answer

Q43) During short run monopolist may ________. Show Answer

Q44) The art of selling the same commodity produced under a single control to different buyers at different prices is called _______. Show Answer

Q45) Essential condition(s) for price discrimination is/are _______. Show Answer

Q46) Essential condition(s) for price discrimination is/are _______. Show Answer

Q47) _______ is the basic objective before a discriminating monopolist. Show Answer

Q48) Under price discrimination, the seller charges ______ in market having the less elastic demand. Show Answer

Q49) Under price discrimination, the seller charges ______ in market having the elastic demand. Show Answer

Q50) A non-discriminating monopolist will find that marginal revenue is _______. Show Answer

Q51) A monopolistic competition is defined as that market struture each seller produces a _____. Show Answer

Q52) The concept of product differentiation means that _______. Show Answer

Q53) Which of the following method is adopted for product differentiation? Show Answer

Q54) Which of the following is/are feature of monopolistic competition? Show Answer

Q55) Which of the following is/are feature of monopolistic competition? Show Answer

Q56) Which of the following is not feature of monopolistic competition? Show Answer

Q57) Which of the following is not feature of monopolistic competition? Show Answer

Q58) Monopolistic competition differs from perfect competition primarily because ______. Show Answer

Q59) In short run a firm operating under monopolistic competition may ________. Show Answer

Q60) In monopolistic competition, firms earn only ______. Show Answer

Q61) A monopolist will maximize profit ______. Show Answer

Q62) Free entry and exit condition exist in _____. Show Answer

Q63) Single firm in industry is feature of _____. Show Answer

Q64) Large number of buyer exists in ______. Show Answer

Q65) Uniform price is a feature of ______. Show Answer

Q66) Firm in industry is 'price taker'. This is feature of ______. Show Answer

Q67) Firm in industry is 'price maker'. This is feature of ______. Show Answer

Q68) Price elasticity of demand for individual firm is perfectly elastic. This is a feature of ____. Show Answer

Q69) Product differentiation is a feature of ______. Show Answer

Q70) No selling costs exist. This is a feature of _____. Show Answer

Q71) Tooth paste industry is example of _______. Show Answer

Q72) Price discrimination take place in ______. Show Answer

Q73) Under which market situation demand curve is linear and parallel to X-axis? Show Answer

Q74) AR=MR=P , is a feature of ______. Show Answer

Q75) Under ______ market condition, firms in industry make normal profit in the long run. Show Answer