Economics GK | Economics Questions and Answers for Competitive Exams
In which market structure the market demand curve is represented by the demand curve of the firm?
(A) Monopoly
(B) Oligarchy
(C) Dual rights
(D) Perfect competition
Correct Answer : A
Explanation :
Since all firms in perfect competition sell identical products and face the same market price, the market demand curve is determined by horizontally summing the individual firm's demand curves. Therefore, the market demand curve coincides with the demand curve of a single firm in perfect competition.
The demand for an inferior good falls when
(A) price increases
(B) income increases
(C) the price decreases
(D) the price decreases
Correct Answer : B
The demand for which of the following goods is elastic?
(A) electricity
(B) medicine
(C) rice
(D) match box
Correct Answer : A
Name the function that represents the number of products a seller is willing to sell at a given price level.
(A) demand curve
(B) Price (cost) curve
(C) supply curve
(D) none of these
Correct Answer : B
The cost of advertising is called
(A) implicit cost
(B) surplus cost
(C) fixed cost
(D) selling cost
Correct Answer : D
Does not include the cost of sales
(A) Oligopoly
(B) monopoly
(C) perfect competition
(D) monopolistic competition
Correct Answer : C
The supply of labour in the economy depends on
(A) Population
(B) National Income
(C) Per capita income
(D) Natural resources
Correct Answer : A
When the labour supply curve bends backwards
(A) Income becomes an inferior good
(B) Work becomes an inferior commodity
(C) Leisure becomes an inferior commodity
(D) People become lazy at higher salary level
Correct Answer : A
Write the correct statement.
(A) The value of a commodity depends on its price.
(B) The value of a good depends entirely on the substitute goods.
(C) A thing will have value (importance) only when someone wants to have it.
(D) A commodity will have value only if it is scarcer than the demand.
Correct Answer : D
In which of the following market structures, there is a variable demand curve?
(A) Perfect competition
(B) Monopoly
(C) Oligpoly
(D) Monopolistic competition
Correct Answer : C
Explanation :
There is freedom of entry and exit. Sellers have perfect knowledge about the market conditions. They are price taker. Price Elasticity of Demand of a firm is Infinite which means demand curve for Perfect competition is a Perfectly Elastic.
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Rajesh Bhatia
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