Micro Economics 2 Set 17

Bachelor of Arts in Economics (BA Economics)

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This set of Micro economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 2 Set 17

Q1 | When there are only two sellers, the market is called as:
  • Oligopoly
  • Monopsony
  • Duopoly
  • Bilateral monopoly
Answer: Duopoly
Q2 | Perfect competition is a market situation under which acommodity is sold at:
  • Uniform price
  • Different price
  • Higher price
  • Lower price
Answer: Uniform price
Q3 | The demand curve of a firm under perfect competition is :
  • Inelastic
  • Perfectly inelastic
  • Infinitely elastic
  • Unitary elastic
Answer: Infinitely elastic
Q4 | The price of a commodity under the perfect competition isdetermined by:
  • Buyer
  • Seller
  • Firm
  • Market forces
Answer: Market forces
Q5 | Equilibrium literally means:
  • Balance
  • Imbalance
  • Change
  • None of these
Answer: Balance
Q6 | The price at which the demand and supply are equal is called:
  • Normal price
  • Support price
  • Equilibrium price
  • Fair price
Answer: Equilibrium price
Q7 | Cost of advertisement and salesmanship is called:
  • Sales cost
  • Selling cost
  • Dual price
  • None of these
Answer: Selling cost
Q8 | Price leadership is a feature of:
  • Monopoly
  • Oligopoly
  • Duopoly
  • Monopolistic Competition
Answer: Oligopoly
Q9 | The market situation characterized by one buyer is:
  • Monopsony
  • Monopoly
  • Bilateral monopoly
  • Oligopsony
Answer: Monopsony
Q10 | Under the Perfect competition, products are:
  • Heterogeneous
  • Homogenous
  • Semi-homogeneous
  • All of these
Answer: Homogenous
Q11 | The demand curve of Monopoly firm is ----------slopped.
  • Downward
  • Upward
  • Positively
  • None of these
Answer: Downward
Q12 | The payment given to the factor labour is known as:
  • Rent
  • Wage
  • Interest
  • profit
Answer: Wage
Q13 | The demand for a factor of production is:
  • Derived
  • Direct
  • Indirect
  • None of these
Answer: Derived
Q14 | Monopoly is:
  • Presence of competition
  • Absence of competition
  • Both A & B
  • None of these
Answer: Absence of competition
Q15 | A monopolist is a:
  • Price taker
  • Price maker
  • Policy maker
  • All of these
Answer: Price maker
Q16 | Long run equilibrium price is also called:
  • Normal price
  • Abnormal price
  • Market price
  • Just price
Answer: Normal price
Q17 | Under perfect competition:
  • AR and MR are identical
  • AR is greater than MR
  • MR is lower than AR
  • None of these
Answer: AR and MR are identical
Q18 | Firm and industry are the same under:
  • Perfect competition
  • Oligopoly
  • Monopoly
  • Duopoly
Answer: Monopoly
Q19 | Kinked demand curve is found under:
  • Monopoly
  • Oligopoly
  • Perfect competition
  • Duopoly
Answer: Oligopoly
Q20 | The point at which the firm covers its variable cost is called:
  • Point of Inflexion
  • Equilibrium
  • Shut down
  • None of these
Answer: Shut down
Q21 | The equilibrium price in the short period is called:
  • Normal price
  • Abnormal price
  • Market price
  • Bogus price
Answer: Market price
Q22 | Cartel is one form of:
  • Monopoly
  • Duopoly
  • Collusive oligopoly
  • Non-collusive oligopoly
Answer: Collusive oligopoly
Q23 | Competition “among the few” is often called as:
  • Duopoly
  • Perfect competition
  • Bilateral monopoly
  • Oligopoly
Answer: Oligopoly
Q24 | The equilibrium point in game theory is called:
  • Prisoner’s dilemma
  • Break-even point
  • Saddle point
  • Shut down point
Answer: Saddle point
Q25 | Equilibrium in the Cournot Model of Duopoly is:
  • Unstable
  • Stable
  • Undefinable
  • None of these
Answer: Stable
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