Online MCQ Assignment Answer

QN1: Which economist stated the positive impact of monopoly?

a. Marshall

b. Adam Smith

c. Joseph Schumpeter

d. Pigou

Answer

Answer:c. Joseph Schumpeter

QN2: “If the demand curve confronting an individual firm is perfectly elastic, then firm is”

a. Price taker

b. Adjust output

c. Adjust price

d. All of these

Answer

Answer:a. Price taker

QN3: A market in which only two firms exist is

a. Oligopoly

b. Duopoly

c. Duopsony

d. Oligopsony

Answer

Answer:b. Duopoly

QN4: Price elasticity of demand provides?

a. “A measure of the responsiveness of the quantity demanded to changes in the price of the product, holding constant.the values of all other variables in the demand function.”

b. A technical change in the goodwill of the firm

c. A technical change in the cost of product

d. Technical change in the value

Answer

Answer:a. “A measure of the responsiveness of the quantity demanded to changes in the price of the product, holding constant.the values of all other variables in the demand function.”

QN5: Efficient allocation of resources is achieved to greatest extent under ?

a. Monopoly

b. Perfect competition

c. Oligopoly

d. Monopolistic competition

Answer

Answer:b. Perfect competition

QN6: “For maximisation of profit in the short run, the condition is”

a. AR = AC

b. MR = MC

c. MR = AR

d. MC = AC

Answer

Answer:b. MR = MC

QN7: Demand is a function of ?

a. Price

b. Firm

c. Product

d. Cost

Answer

Answer:a. Price

QN8: Selling costs have to be incurred in case of

a. Perfect competition

b. Monopolistic competition

c. Imperfect competition

d. None

Answer

Answer:b. Monopolistic competition

QN9: Which type of competition leads to exploitation of consumer?

a. Oligopoly

b. Monopolistic competition

c. Monopoly

d. All of the above

Answer

Answer:d. All of the above

QN10: Imperfect competition was introduced by ___?

a. Marshall

b. Chamberlin

c. Keynes

d. None

Answer

Answer:b. Chamberlin-Ans

QN11: In the case of monopolistic competition

a. MR curve cannot be defined

b. AR curve cannot be defined

c. The short run supply curve cannot be defined

d. None of the above

Answer

Answer:c. The short run supply curve cannot be defined

QN12: Value maximization theory fails to address the problem of

a. self-serving management.

b. risk

c. uncertainty

d. sluggish growth.

Answer

Answer:a. self-serving management.

QN13: Average revenue is calculated by

a. TRn – TRn-1

b. P x Q

c. TR / MR

d. TR/Q

Answer

Answer: d. TR/Q

QN14: An indifference curve is always

a. A vertical straight line

b. Convex to the origin

c. Concave to the origin

d. A horizontal straight line

Answer

Answer:b. Convex to the origin

QN15: The kinked demand curve explains?

a. Price rigidity

b. Price flexibility

c. Demand rigidity

d. Demand flexibility

Answer

Answer:a. Price rigidity

QN16: Which one is not normally possible in case of monopoly?

a. MC = MR

b. AC = AR

c. MR = AR

d. MR = PR

Answer

Answer:c. MR = AR

QN17: A firm’s marginal revenue?

a. is always negative

b. can be positive

c. is always positive

d. is positive at point at which the total revenue is maximum

Answer

Answer:d. is positive at point at which the total revenue is maximum

QN18: Cross elasticity of demand between two perfect substitutes will be

a. low

b. high

c. zero

d. infinity

Answer

Answer:d. infinity

QN19: Elasticity of demand measures the

a. Sensitivity of sales to changes in a particular causal factor

b. Sensitivity of production to changes in a particular cost

c. Value of price and cost

d. Volume of product

Answer

Answer:a. Sensitivity of sales to changes in a particular causal factor

QN20: “In the case of an inferior good, the income effect”

a. Partially offsets the substitution effect

b. Is equal to the substitution effect

c. Reinforces the substitution effect

d. More than offsets the substitution effect

Answer

Answer:a. Partially offsets the substitution effect

QN21: Factors responsible for creating conditions for emergence and growth of monopoly are

a. Control over strategic raw materials

b. Patents

c. Licensing

d. All of the above

Answer

Answer:d. All of the above

QN22: A situation where there is only one buyer is called

a. Monopoly

b. Oligopoly

c. Monopsony

d. Perfect competition

Answer

Answer:a. Monopoly

QN24: Demand curve is related to?

a. MU curve

b. Marginal revenue

c. Both a and b

d. None of these

Answer

Answer:a. MU curve

QN25: Shifts in demand curve include

a. Increase in Demand (Upward shift)

b. Extention in demand

c. Contraction in demand

d. None of the above

Answer

Answer:a. Increase in Demand (Upward shift)

QN26: The equilibrium is unstable and indeterminate under

a. Edgeworth model

b. Cournot Model

c. Sweezy Model

d. Pareto Model

Answer

Answer:a. Edgeworth model

QN27: The upper portion of the kinked demand curve is relatively

a. More inelastic

b. More elastic

c. Less elastic

d. Inelastic

Answer

Answer:b. More elastic

QN28: The term group equilibrium is related to

a. Monopolistic competition

b. Oligopoly

c. Duopoly

d. Perfect competition

Answer

Answer: a. Monopolistic competition

QN29: In the calculation of elasticity, there is error in case of

a. Arc elasticity

b. Point elasticity

c. Both (a) and (b)

d. None

Answer

Answer: c. Both (a) and (b)

QN30: How many sellers are present in duopoly?

a. One

b. two

c. Three

d. four

Answer

Answer:b. two

QN31: Demand Analysis includes:

a. Demand Forecasting

b. Demand Differentials

c. Demand Determinations

d. All of the above

Answer

Answer:d. All of the above

QN32: “Under perfect competition, price of the product”

a. Can be controlled

b. Cannot be controlled

c. Can be controlled within certain limit

d. None of the above

Answer

Answer:b. Cannot be controlled

QN33: “In a monopoly market, an upward shift in the market demand results in a new equilibrium with”

a. A higher quantity and a lower price

b. A higher quantity and the same price

c. A higher quantity and higher price

d. All of the above

Answer

Answer:d. All of the above

QN34: Cartels is a form of

a. Collusive oligopoly

b. Monopoly

c. Non-Collusive oligopoly

d. None of these

Answer

Answer:b. Monopoly

QN35: Market with one buyer and one seller is called

a. Monopsony

b. Monopoly

c. Bilateral Monopoly

d. None of the above

Answer

Answer: c. Bilateral Monopoly

QN36: Given: Epx = Percentage change in Qy / Percentage change in Px. The above relationship is :

a. Arc Cross Price Elasticity

b. Cost Output

c. Cost Profit

d. Capital Budgeting

Answer

Answer:a. Arc Cross Price Elasticity

QN37: Study of collusive agreement is

a. Collusive oligopoly

b. Non-Collusive oligopoly

c. Monopoly

d. All of the above

Answer

Answer: a. Collusive oligopoly

QN38: Price effect in indifference curve analysis arises?

a. When the consumer becomes either better off or worse off because price change is not compensated by income change.

b. When the consumer is betler off due to a change in income and price

c. When income and price change

d. None of the above

Answer

Answer:a. When the consumer becomes either better off or worse off because price change is not compensated by income change.

QN39: Which of the following is an important dynamic variable?

a. Superior’s style and behaviour

b. Organisational nature

c. The task structure

d. Cultural variables

Answer

Answer:c. The task structure

QN40: A situation in which the number of competing firms is relatively small is known as?

a. Incorrect

b. Perfect competition

c. Monopsony

d. Oligopoly

Answer

Answer: d. Oligopoly

QN41: “At elasticity of one, marginal revenue is equal to”

one

zero

infinity

none

Answer

Answer: one

Answer

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