Monday, 22 February 2021

CBSE Class 11 Micro Economics - MCQ and Online Tests - Unit 5 - Market Equilibrium

CBSE Class 11 Micro Economics – MCQ and Online Tests – Unit 5 – Market Equilibrium

Every year CBSE schools conducts Annual Assessment exams for 6,7,8,9,11th standards. These exams are very competitive to all the students. So our website provides online tests for all the 6,7,8,9,11th standard’s subjects. These tests are also very effective and useful for those who preparing for any competitive exams like Olympiad etc. It can boost their preparation level and confidence level by attempting these chapter wise online tests.

These online tests are based on latest CBSE syllabus. While attempting these our students can identify the weak lessons and continuously practice those lessons for attaining high marks. It also helps to revise the NCERT textbooks thoroughly.


 

CBSE Class 11 Micro Economics – MCQ and Online Tests – Unit 5 – Market Equilibrium

Question 1.
Who gave the concept of ‘Time Element’ in price determination process ?
(a) Ricardo
(b) Walras
(c) Marshall
(d) J. K. Mehta

Answer

Answer: (c) Marshall


Question 2.
How many categories of production duration have been made by Marshall on the basis of supply ?
(a) Two
(b) Three
(c) Four
(d) Seven

Answer

Answer: (b) Three


Question 3.
Which is a reason of change in demand ?
(a) Change in Consumer’s Income
(b) Change in Prices of Related Goods
(c) Population increase
(d) All the above

Answer

Answer: (d) All the above


Question 4.
In which market product differentiation is found ?
(a) Pure Competition
(b) Perfect Competition
(c) Monopoly
(d) Monopolistic Competition

Answer

Answer: (c) Monopoly


Question 5.
Which of the following is true in perfect competition ?
(a) Firm is price-taker, not price-maker
(b) Firm’s demand curve is perfectly elastic
(c) AR = MR
(d) All the above

Answer

Answer: (d) All the above


Question 6.
Which one is a feature of monopoly ?
(a) Single Seller and Many Buyers
(b) Lack of Close Substitutes
(c) Restrictions of New Firm entry
(d) All of these

Answer

Answer: (d) All of these


Question 7.
Which one of the following is true for monopoly ?
(a) Firm is price-maker
(b) Demand curve slopes downward
(c) Price discrimination possibility arises
(d) All the above

Answer

Answer: (d) All the above


Question 8.
Which one is a feature of monopolistic competition ?
(a) Differentiated Product
(b) Selling Cost
(c) Imperfect Knowledge of the Market
(d) All the above

Answer

Answer: (d) All the above


Question 9.
A market in which there is free entry and exit, the market is:
(a) Monopolistic Competitive Market
(b) Imperfect Competitive Market
(c) Perfectly Competitive Market
(d) None of these

Answer

Answer: (c) Perfectly Competitive Market


Question 10.
What does a monopolist market show ?
(a) Production process
(b) Distribution system
(c) Nature of market
(d) None of these

Answer

Answer: (c) Nature of market


Question 11.
Price discrimination is found in which market ?
(a) Pure Competition
(b) Perfect Competition
(c) Monopoly
(d) Monopolistic Competition

Answer

Answer: (c) Monopoly


Question 12.
Which of the following is the feature of pure competition ?
(a) Perfect knowledge of the market
(b) Perfect mobility of factors
(c) Homogenity by products
(d) All the above

Answer

Answer: (d) All the above


Question 13.
Market situation where there is only one buyer is:
(a) Monopoly
(b) Monopsony
(c) Duropoly
(d) None of these

Answer

Answer: (b) Monopsony


Question 14.
The concept of monopolistic competition is given by:
(a) Hicks
(b) Chamberlin
(c) Mrs. Robinson
(d) Samuelson

Answer

Answer: (b) Chamberlin


Question 15.
Which of the following is not a feature of perfect competition ?
(a) Large number of buyers and sellers
(b) Homogeneity of product
(c) Advertisement and selling cost
(d) Perfect knowledge of the market

Answer

Answer: (c) Advertisement and selling cost


Question 16.
In which market is AR equal to MR ?
(a) Perfect competition
(b) Oligopoly
(c) Imperfect competition
(d) Monopoly

Answer

Answer: (a) Perfect competition


Question 17.
Which factor determines Equilibrium Price ?
(a) Demand for Commodity
(b) Supply of Commodity
(c) Both (a) and (b)
(d) None of the above

Answer

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


Question 18.
“Price is determined by Demand and Supply. Whose statement is this ?
(a) Jevons
(b) Walras
(c) Marshall
(d) None of these

Answer

Answer: (c) Marshall


Question 19.
Which statement is correct ?
(a) In very short period, supply is perfectly inelastic, price is affected by both demand conditions.
(b) Supply curve elasticity depends on time period
(c) Both (a) and (b)
(d) None of the above

Answer

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


Question 20.
Market Price is found in:
(a) Short Period Market
(b) Long Period Market
(c) Very Long Period Market
(d) None of these

Answer

Answer: (a) Short Period Market


Questions 21.
Which of the following is the component of instrument pricing:
(a) Rent
(b) Wages
(c) Interest
(d) None of these.

Answer

Answer: (c) Interest


Question 22.
Demand curve of a firm is perfectly elastic in:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly.

Answer

Answer: (a) Perfect competition


Questions 23.
Administrative price is:
(a) Price ceiling
(b) Price floor
(c) Both (a) and (b)
(d) None of these.

Answer

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


Questions 24.
Minimum support price of wheat is called:
(a) Price ceiling
(b) Price floor
(c) Market price
(d) Equilibrium price.

Answer

Answer: (b) Price floor


Question 25.
Which is a characteristic of the market ?
(a) One Area
(b) Presence of both Buyers and Sellers
(c) Single Price of the Commodity
(d) All the above

Answer

Answer: (d) All the above


Question 26.
Which is a basic for the classification of the market ?
(a) Perfect Competition
(b) Zero Competition (Monopoly)
(c) Imperfect Competition
(d) All the above

Answer

Answer: (d) All the above


Question 27.
Which of the following is a feature of perfect competition ?
(a) Large Number of Buyers and Sellers
(b) Homogeneous Units of the Product
(c) Perfect Knowledge of the Market
(d) All the above

Answer

Answer: (d) All the above


Questions 28.
Which factors help in the determination of equilibrium price:
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above.

Answer

Answer: (d) None of the above


Questions 29.
Which among the following statement is not true:
(a) Demand of labor is done by the producer
(b) Demand of labor depends open its productivity
(c) Marginal productivity of a labor is his maximum wages
(d) All of the above.

Answer

Answer: (d) All of the above


Question 30.
The price of a good is determined by:
(a) Demand
(b) Supply
(c) Both demand and supply
(d) Government

Answer

Answer: (c) Both demand and supply


Question 31.
Market price is associated with:
(a) Price of very short period
(b) Normal price
(c) Permanent price
(d) All of these

Answer

Answer: (a) Price of very short period


Question 32.
The price of a goods in perfect competition is determined by:
(a) Bargaining
(b) Production cost
(c) Marginal utility
(d) Demand and supply

Answer

Answer: (d) Demand and supply


Question 33.
In perfect competition, a firm:
(a) Determines price
(b) Obtains price
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Obtains price


Question 34.
In very short period, supply will be:
(a) Perfectly elastic
(b) Perfectly Inelastic
(c) Elastic
(d) None of these

Answer

Answer: (b) Perfectly Inelastic


Question 35.
Which is not a condition for equilibrium of a monopoly form ?
(a) Average Revenue = Marginal Cost
(b) Marginal Revenue = Marginal Cost
(c) Marginal Cost should cut the Marginal Revenue Curve from below
(d) Both (b) and (c)

Answer

Answer: (a) Average Revenue = Marginal Cost


Question 36.
In perfect competition, these is……. profit
(a) Normal
(b) Maximum
(c) Zero
(d) None of these

Answer

Answer: (a) Normal


Question 37.
A Seller Cannot influence the market price under:
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic Competition
(d) All of these

Answer

Answer: (a) Perfect Competition


Question 38.
Which determines the equilibrium price ?
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above

Answer

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


Question 39.
Which is the component of factor price determination ?
(a) Rent
(b) Wages
(c) Interest
(d) All of these

Answer

Answer: (d) All of these


Question 40.
Price of a goods is determined at a point where :
(a) Demand > Supply
(b) Demand < Supply
(c) Demand = Supply
(d) None of these

Answer

Answer: (c) Demand = Supply


Question 41.
None of these Rent is = ?
(a) Actual Income – Transfer Earnings
(b) Actual Income + Transfer Earnings
(c) Transfer Earnings
(d) None of these

Answer

Answer: (a) Actual Income – Transfer Earnings


Question 42.
Which of the following is correct ?
(a) Labour Demand comes from producer
(b) Demand of labour depends on its productivity.
(c) Marginal productivity of labour is its maximum wage
(d) All the above

Answer

Answer: (d) All the above


Question 43.
Main feature of perfectly competitive market is:
(a) Uniform price
(b) Homogeneous product
(c) Large number of buyers and sellers
(d) All of the above.

Answer

Answer: (d) All of the above.


Question 44.
The market in which there is free entry and exit is:
(a) Monopolistic competition market
(b) Imperfect competition market
(c) Perfect competitions market
(d) None of these.

Answer

Answer: (c) Perfect competitions market


Question 45.
There is inverse relation between demand and price of goods in:
(a) Only monopoly
(b) Only monopolistic competition
(c) Both (a) and (b)
(d) Only perfect competition.

Answer

Answer: (d) Only perfect competition.


Question 46.
According to which economist “Price of a commodity is determined by the forces of demand and supply”:
(a) Jevons
(b) Valros
(c) Marshall
(d) None of these.

Answer

Answer: (c) Marshall


Question 47.
Not a condition of equilibrium of monopoly firm:
(a) Average revenue = Marginal revenue
(b) Marginal revenue = Marginal cost
(c) Marginal cost curve cuts marginal revenue curve from downwards.
(d) Both (b) and (c).

Answer

Answer: (a) Average revenue = Marginal revenue


Question 48.
Market price is found in:
(a) Short period market
(b) Long period market
(c) Very long period market
(d) None of these.

Answer

Answer: (a) Short period market


Question 49.
Price of a commodity is determined at a point where :
(a) Demand exceeds
(b) Supply exceeds
(c) Demand equals supply
(d) None of these

Answer

Answer: (c) Demand equals supply


Question 50.
What is true for perfect competition market ?
(a) Price is determined by both Demand and Supply Forces
(b) Price is determined by the industry
(c) Each firm of the industry is Price-taker
(d) All the above

Answer

Answer: (d) All the above


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