Bihar Board 12th Economics Objective Answers Chapter 4 Forms of Market and Price Determination

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics Objective Answers Chapter 4 Forms of Market and Price Determination

Question 1.
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:
(D) All the above

Question 2.
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:
(D) All the above

Question 3.
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:
(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:
(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:
(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:
(D) All of these

Question 7.
Which one of tbe 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:
(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:
(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:
(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:
(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:
(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:
(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:
(B) Monopsony

Question 14.
The concept of monopolistic competition is given by:
(A) Hicks
(B) Chamberlin
(C) Mrs. Robinson
(D) Samuelson
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:
(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:
(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:
(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:
(C) Marshall

Question 19.
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:
(C) Demand equals supply

Question 20.
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:
(D) All the above

Question 21.
Who gave the concept of ‘Time Element’ in price determination process ?
(A) Ricardo
(B) Walras
(C) Marshall
(D) J. K. Mehta
Answer:
(C) Marshall

Question 22.
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:
(B) Three

Question 23.
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:
(D) All the above

Question 24.
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:
(C) Both (a) and (b)

Question 25.
Market Price is found in:
(A) Short Period Market
(B) Long Period Market
(C) Very Long Period Market
(D) None of these
Answer:
(A) Short Period Market

Question 26.
The price of a good is determined by:
(A) Demand
(B) Supply
(C) Both demand and supply
(D) Government
Answer:
(C) Both demand and supply

Question 27.
Market price is associated with:
(A) Price of very short period
(B) Normal price
(C) Permanent price
(D) All of these
Answer:
(A) Price of very short period

Question 28.
The price of a goods in perfect competition is determined by:
(A) Bargaining
(B) Production cost
(C) Marginal utility
(D) Demand and supply
Answer:
(D) Demand and supply

Question 29.
In perfect competition, a firm:
(A) Determines price
(B) Obtains price
(C) Both (a) and (b)
(D) None of these
Answer:
(B) Obtains price

Question 30.
In very short period, supply will be:
(A) Perfectly elastic
(B) Perfectly Inelastic
(C) Elastic
(D) None of these
Answer:
(B) Perfectly Inelastic

Question 31.
Which is not a condition for equilibrium of a monopoly form ?
(A) Average Revenus = Marginal Cost
(B) Marginal Revenue = Marginal Cost
(C) Marginal Cost should cut the Marginal Revenue Curve from below
(D) Both (b) and (c)
Answer:
(A) Average Revenus = Marginal Cost

Question 32.
In perfect competition, these is……. profit
(A) Normal
(B) Maximum
(C) Zero
(D) None of these
Answer:
(A) Normal

Question 33.
A Seller Cannot influence the market price under:
(A) Perfect Competition
(B) Monopoly
(C) Monopolistic Competition
(D) All of these
Answer:
(A) Perfect Competition

Question 34.
Which determines the equilibrium price ?
(A) Demand
(B) Supply
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Question 35.
Which is the component of factor price determination ?
(A) Rent
(B) Wages
(C) Interest
(D) All of these
Answer:
(D) All of these

Question 36.
Price of a goods is determined at a point where :
(A) Demand > Supply
(B) Demand < Supply
(C) Demand = Supply
(D) None of these
Answer:
(C) Demand = Supply

Question 37.
None of these Rent is = ?
(A) Actual Income – Transfer Earnings
(B) Actual Income + Transfer Earnings
(C) Transfer Earnings
(D) None of these
Answer:
(A) Actual Income – Transfer Earnings

Question 38.
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:
(D) All the above