Practice Test

Q1) In a _______ competition market, goods are sold at a uniform price. Show Answer

Q2) Laissez-faire policy is adopted by the government under ______. Show Answer

Q3) The remuneration of factors of production is decided by its ________ productivity. Show Answer

Q4) In a perfect competitive market, the seller (industry/firm) is a price-________. Show Answer

Q5) In a monopoly form of market, the firm has a_______ degree of control over price of its product. Show Answer

Q6) In a monopoly competitive market, the policy of product ________ is adopted. Show Answer

Q7) The price at equated demand and supply is called as ______ price. Show Answer

Q8) In practice, there is _______ competition in the market. Show Answer

Q9) Price _______ appears in a monopoly market. Show Answer

Q10) A monopolist firm/seller can get_______ profits. Show Answer

Q11) In Economics, the market _________necessarily confined to a specific place Show Answer

Q12) Under _____, there is no difference between the firm and the industry. Show Answer

Q13) The forces of demand and supply are brought into equilibrium by _________. Show Answer

Q14) The marginal productivity theory assumes that labourers are ________. Show Answer

Q15) The demand curve faced by a perfect competitive firm is _______. Show Answer

Q16) The demand curve faced by a monopolist firm is ________. Show Answer

Q17) There is free entry and exit allowed in a _______ market structure. Show Answer

Q18) _________ monopolies are the monopolies granted by the law. Show Answer

Q19) Perfect competition is a ________ concept than pure competition. Show Answer

Q20) In poor countries, the marginal propensity to consume is ________. Show Answer

Q21) ________ is the characteristics of perfect competition. Show Answer

Q22) Firms under perfect competition is a price _______. Show Answer

Q23) There exist _______ price in a perfectly competitive market. Show Answer

Q24) Firm under perfect competition earn ______ profit in the long run. Show Answer

Q25) Existence of single seller and absence of close substitute are the characteristics of __________. Show Answer

Q26) _______ is the motive of a monopolist. Show Answer

Q27) The firm under monopoly is a price ________. Show Answer

Q28) Barrier to entry and exist is the characteristics of _________. Show Answer

Q29) The concept of monopolistic competition is introduced by _________. Show Answer

Q30) Product ________ is the blending of monopoly and competition. Show Answer

Q31) _______ cost is the unique feature of monopolistic competition. Show Answer

Q32) _______ is a cluster of firms producing closely related but differentiated products. Show Answer

Q33) In a market period, the _______ of a commodity remain constant. Show Answer

Q34) In a perfect market, industry is price _________. Show Answer

Q35) _______ appears in a monopoly market. Show Answer

Q36) Homogenous product is the characteristic of _________. Show Answer

Q37) Monopolistic can get _______ profits. Show Answer

Q38) Under perfect competition, the product sold is __________. Show Answer

Q39) _______ competition is a myth. Show Answer

Q40) There is a single seller under __________. Show Answer

Q41) Pure monopoly is _________ monopoly. Show Answer

Q42) Under monopoly there is only one ________. Show Answer

Q43) Under perfect competition, there is ________ knowledge on the part of buyers and sellers of a commodity. Show Answer

Q44) Limited monopoly is more _______. Show Answer

Q45) There is lack of _________ in monopoly. Show Answer

Q46) _______ commodities prevail under perfect competition. Show Answer

Q47) Monopolist mean a _________. Show Answer

Q48) The nature of the market of barter system is _______. Show Answer

Q49) Perfect competition and imperfect competition are the forms of __________. Show Answer

Q50) _______ prevails when the demand for the output of each producer is perfectly elastic. Show Answer

Q51) Every firm has only one goal maximisation of _______. Show Answer

Q52) The monopolist faces industry demand curve and demand curve for his product slopes ________. Show Answer

Q53) There is a group of monopolist in every line of production competing each other, it is called as ________ competition. Show Answer

Q54) There are many entry barriers under _______ market. Show Answer

Q55) _______ is an ideal form of market structure. Show Answer

Q56) Money spent for advertisement is ________. Show Answer

Q57) Legal monopoly exist due to _______. Show Answer

Q58) Railways is an example of _________ monopoly. Show Answer

Q59) A monopolist is a price maker. Show Answer

Q60) Under perfect competition, there are many sellers and many buyers. Show Answer

Q61) Selling costs are unique features of monopolistic market. Show Answer

Q62) The monopolist has no control over the price of his commodity in the market. Show Answer

Q63) Price discrimination is impossible in the perfect competition. Show Answer

Q64) Perfect competition is an ideal but not an actual market structure in real life. Show Answer

Q65) Monopolistic competition is a blending of monopoly and perfect competition. Show Answer

Q66) Equilibrium price is determined at intersection point of demand curve and supply curve. Show Answer

Q67) In a monopoly situation, a seller is a firm and an industry both. Show Answer

Q68) Pure competition is same as perfect competition. Show Answer

Q69) When marginal product is Zero then total product is maximum. Show Answer

Q70) The concepts of imperfect competition are introduced by Mrs. Joan Robinson. Show Answer

Q71) The supply force has a greater impact on price in the very short period. Show Answer

Q72) When supply increases and demand decreases, the equilibrium price falls to a great extent. Show Answer

Q73) Monopoly products have close substitutes. Show Answer

Q74) In economics, market means a place where buyers and sellers meet. Show Answer

Q75) There is no transport cost in perfectly competitive market. Show Answer

Q76) There is no selling cost in the perfect competition. Show Answer

Q77) A single seller is the only feature of monopoly. Show Answer

Q78) A monopolist can earn abnormal profit. Show Answer

Q79) In economic sense, market includes following activities - (a) The place where goods are sold and purchased. (b) An arrangement through which buyers and sellers come in close contact with each other directly or indirectly. (c) A shop where goods are sold. (d) All of the above Show Answer

Q80) Classification of markets on the basis of place - (a) Local market, National market, International market. (b) Very short period market, Local market, National market. (c) Short period market, National market, International market. (d) Local market, National market, Short period market. Show Answer

Q81) Homogeneous product is a feature of this market - (a) Monopoly (b) Monopolistic competition (c) Perfect competition (d) Oligopoly Show Answer

Q82) Under Perfect competition, sellers are - (a) Price makers (b) Price takers (c) Price discriminators (d) None of these Show Answer

Q83) Features of Perfect Competition are - (a) Large number of buyers (b) Large number of sellers (c) Different prices (d) Perfect mobility Show Answer

Q84) Features of Monopoly are - (a) Single seller (b) No close substitutes (c) Control over supply (d) Price taker Show Answer

Q85) Features of Monopolistic Competition are - (a) Homogeneous product (b) Selling Cost (c) Downward sloping demand curve (d) Few buyers Show Answer

Q86) Legal monopoly is recognized by - (a) Legal provision (b) Trade Mark (c) License (d) Copyright Show Answer

Q87) Examples of discriminating monopoly are - (a) Doctors (b) Lawyers (c) Consultants (d) All of the above Show Answer

Q88) Types of imperfect market are - (a) Monopoly (b) Oligopoly (c) Monopolistic Competition (d) Perfect Competition Show Answer

Q89) Classification of markets on the basis of time.
i. Very short period market, Long period market, Very long period market
ii. Very short period market, Local market. National market
iii. Short period market, National market, International market
iv. Short period market, Long period market, Very long period market Show Answer

Q90) The monopoly that emerges on account of provisions like patents, trademark, copyrights.
i. Legal monopoly
ii. Natural monopoly
iii. Simple monopoly
iv. Discriminating monopoly Show Answer

Q91) This is not a type of monopoly.
i. Voluntary monopoly
ii. Private monopoly
iii. Involuntary monopoly
iv. Public monopoly Show Answer

Q92) Mobile service providers in India are an example of this type of market.
i. Oligopoly
ii. Perfect competition
iii. Monopoly
iv. Monopolistic competition Show Answer

Q93) These are the features of oligopoly.
i. Few firms or sellers
ii. Advertising
iii. Entry barriers
iv. Lack of uniformity in size Show Answer

Q94) These are the features of monopolistic competition.
i. Free entry and exit
ii. Close substitutes
iii. No selling cost
iv. Fairly large number of buyers Show Answer

Q95) Assertion (A): Perfect competition is an imaginary concept of market.
Reasoning (R): There are large number of buyers and sellers in perfect competition. Show Answer

Q96) Assertion (A): In perfect competition, price is determined by the forces of demand & supply.
Reasoning (R): The number of buyers and sellers is so large that one person cannot influence prices. Show Answer

Q97) Assertion (A): Monopoly is a market in which there is only one seller who controls the entire supply.
Reasoning (R): The product sold by the monopolist has just one more substitute. Show Answer

Q98) Assertion (A): Price discrimination is an important feature of monopolistic competition.
Reasoning (R): Monopolist can charge different prices from different consumers for the same product. Show Answer

Q99) Assertion (A): Advertising is a powerful instrument in the hands of oligopolist.
Reasoning (R): With an attractive & aggressive advertising campaign, the oligopolist can capture a large part of the market. Show Answer

Q100) Assertion (A): In monopolistic competition also, the seller behaves like a monopoly.
Reasoning (R): There are fairly large number of sellers in monopolistic competition but not as large as perfect competition. Show Answer

Q101) Assertion (A): Product differentiation is the main feature of monopolistic competition.
Reasoning (R): There is no close substitute to the product in monopolistic competition. Show Answer

Q102) Assertion (A): Under monopolistic competition, Chamberlin introduced the concept of ‘industry’.
Reasoning (R): Industry means the number of firms producing identical products. Show Answer

Q103) The ___________ period market is for a few days or weeks in which the supply of the commodity cannot be increased. Show Answer

Q104) According to Mrs. Joan Robinson, “Perfect competition” prevails when the demand for the output for each producer is ____________. Show Answer

Q105) Under perfect competition, price is uniform because we assume that _________ cost does not exist. Show Answer

Q106) ___________ compared the process of price determination in perfect competition to cutting of cloth with a pair of scissors. Show Answer

Q107) The term monopoly is derived from the __________ word ‘Mono’ which means single and ‘poly’ which means sellers. Show Answer

Q108) The cross elasticity of demand for the product of a monopolist is either ___________. Show Answer

Q109) The term oligopoly is derived from the ___________ word ‘Oligo’ which means few and 'poly' which means sellers. Show Answer

Q110) This is not a feature of oligopoly. Show Answer

Q111) __________ coined the concept of monopolistic competition in his book ‘Theory of Monopolistic Competition’ published in 1933. Show Answer

Q112) The cross elasticity of demand for the product in monopolistic competition is _____________. Show Answer