Economics MCQ Quiz Hub

1. Which of the following is one of the assumptions of perfect competition.
Few buyers and few sellers
Many buyers and few sellers
Many buyers and many sellers
All sellers and buyers are honest

2. A firm under perfect competition is:
Price maker
Price breaker
Price taker
Price shaker

3. Which of the following markets comes closet to perfect market.
Wheat market
Cigarette market
Cold drinks market
Stock market

4. This kind of market is undesirable:
General markets
Specialized
Local market
National market

5. Which is a condition for existence of monopoly:
Big size
Identical product
Absence of government taxes
No close substitute

6. In case of monopoly:
Marginal revenue curve always slopes upward
Total revenue curve always slopes upward
Marginal revenue is always equal to average revenue
Marginal revenue is always less than average revenue

7. In case of perfect competition in the market:
Marginal revenue curve always slopes upward
Marginal revenue curve always slopes downward
Marginal revenue is always equal to average revenue
Marginal revenue is always less than average revenue

8. In the business world:
A firm working under perfect competition wants to become a monopoly
A firm working under monopoly wants to become a competitive firm
Monopoly price is always higher than competitive price
Competitive price is always higher than monopoly price

9. Which is not true:
Perfect monopoly does not exist in real world
Perfect competition does not exist in real world
Every monopoly is evil
Every firm wants to reduce competition

10. The major difference between perfect competition and monopolistic competition is:
Number of firms
Differentiated product
Rate of profit
Free exist and entry

11. Marginal revenue is always less than price at all levels of output in:
Perfect competition
Monopoly
Both (a) & (b)
None of the above

12. Which of the following is not a characteristic of perfect competition?
Free entry and exit of the firms
the demand curve of firm is horizontal
The marginal revenue curve is horizontal
An individual firm can influence the price

13. When marginal revenue is zero, total revenue:
Maximum
Minimum
Zero
Decreasing

14. Marginal revenue is always less than price at all levels of output in:
Perfect competition
Monopoly
Both (a) & (b)
None of the above

15. Which of the following is not a characteristic of perfect competition?
Free entry and exit of the firms
Demand curve of a firm is horizontal
The marginal revenue curve is horizontal
An individual firm can influence the price