MCQs for Economics Class 12 with Answers Chapter 5 Market Competition
Students of class 12 Economics should refer to MCQ Questions Class 12 Economics Market Competition with answers provided here which is an important chapter in Class 12 Economics NCERT textbook. These MCQ for Class 12 Economics with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 12 Economics. The following MCQs can help you to practice and get better marks in the upcoming class 12 Economics examination
Chapter 5 Market Competition MCQ with Answers Class 12 Economics
MCQ Questions Class 12 Economics Market Competition provided below have been prepared by expert teachers of grade 12. These objective questions with solutions are expected to come in the upcoming Standard 12 examinations. Learn the below provided MCQ questions to get better marks in examinations.
Question. Equilibrium price and output changes when:
(a) Demand changes
(b) Supply changes
(c) Both demand and supply changes
(d) All of the above
Answer
C
Question. When demand increases with no change in supply, equilibrium price ……………….and quantity ………………. .
(a) Rises, rises
(b) Rises, falls
(c) Falls, falls
(d) Falls, rises
Answer
A
Question. Demand curve is elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
C
Question. Few firms exist under:
(a) Perfect competition
(b) Oligopoly
(c) Monopolistic competition
(d) Both perfect and monopolistic competition
Answer
B
Question. When supply increases and there is no change in demand, then equilibrium price ………………. and quantity ………………. .
(a) Falls, rises
(b) Rises falls
(c) Rises rises
(d) Falls, falls
Answer
A
Question. When supply decreases and there is no change in demand, then equilibrium price ………………. and quantity ………………. .
(a) Falls, rises
(b) Rises, falls
(c) Rises, rises
(d) Falls, falls
Answer
B
Question. In which market structure, price and output solution is indeterminate?
(a) Oligopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Monopoly
Answer
A
Question. Homogenous product means products are:
(a) Similar
(b) Close substitutes
(c) Quite alike
(d) None of the above
Answer
C
Question. Monopoly means:
(a) Single firm
(b) No close substitutes
(c) Barriers to entry
(d) All of the above
Answer
C
Question. There is inverse relation between price and demand for the product of a firm under:
(a) Monopoly only
(b) Monopolistic competition only
(c) Both under monopoly and monopolistic competition
(d) Perfect competition only
Answer
C
Question. Demand curve is inelastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
B
Question. Differentiated but close substitutes exist under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
C
Question. ‘Homogenous products’ is a characteristic of:
(a) Perfect competition only
(b) Perfect oligopoly only
(c) Both (a) and (b)
(d) None of the above
Answer
C
Question. Selling cost is insignificant under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
B
Question. Demand curve of a firm is perfectly elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Answer
A
Question. When increase in demand is more than increase in supply, then equilibrium price will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
B
Question. When demand decreases and there is no shift in supply, the equilibrium price ………………. and quantity ………………. .
(a) Rises, rises
(b) Rises, falls
(c) Falls, falls
(d) Falls, rises
Answer
C
Question. Entry is restricted under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
B
Question. Demand curve is perfectly elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
A
Question. When increase in demand in more than increase in supply, then equilibrium quantity will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
B
Question. There are only a few sellers under
(a) Perfect Competition
(b) Monopolistic competition
(c) Monopoly
(d) Oligopoly
Answer
C
Question. At a price above the equilibrium price, there is:
(a) Excess supply
(b) Excess demand
(c) Ceiling
(d) Flooring
Answer
A
Question. At a price below the equilibrium price, there is:
(a) Excess supply
(b) Excess demand
(c) Ceiling
(d) Flooring
Answer
B
Question. When both demand and supply increases in the same proportion then equilibrium price will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
A
Question. Marginal revenue of a firm is constant throughout under:
(a) Perfect competition
(b) Monopolistic co
(c) Oligopoly
(d) All the above
Answer
A
Question. A seller cannot influence the market price under
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
A
Question. When both demand and supply decrease in the same proportion, then the equilibrium quantity will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
C
Question. When both demand and supply decreases in the same proportion, then equilibrium price will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
A
Question. A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be:
(a) Greater than Average Revenue
(b) Less than Average Revenue
(c) Equal to Average Revenue
(d) Zero
Answer
C
Question. Differentiated products is a characteristic of:
(a) Monopolistic competition only
(b) Oligopoly only
(c) Both monopolistic competition and oligopoly
(d) Monopoly
Answer
C
Question. When both demand and supply increase in the same proportion then equilibrium quantity will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Question. Equilibrium price and output changes when:
(a) Demand changes
(b) Supply changes
(c) Both demand and supply changes
(d) All of the above
Answer
C
Question. When demand increases with no change in supply, equilibrium price ……………….and quantity ………………. .
(a) Rises, rises
(b) Rises, falls
(c) Falls, falls
(d) Falls, rises
Answer
A
Question. Demand curve is elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
C
Question. Few firms exist under:
(a) Perfect competition
(b) Oligopoly
(c) Monopolistic competition
(d) Both perfect and monopolistic competition
Answer
B
Question. When supply increases and there is no change in demand, then equilibrium price ………………. and quantity ………………. .
(a) Falls, rises
(b) Rises falls
(c) Rises rises
(d) Falls, falls
Answer
A
Question. When supply decreases and there is no change in demand, then equilibrium price ………………. and quantity ………………. .
(a) Falls, rises
(b) Rises, falls
(c) Rises, rises
(d) Falls, falls
Answer
B
Question. In which market structure, price and output solution is indeterminate?
(a) Oligopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Monopoly
Answer
A
Question. Homogenous product means products are:
(a) Similar
(b) Close substitutes
(c) Quite alike
(d) None of the above
Answer
C
Question. Monopoly means:
(a) Single firm
(b) No close substitutes
(c) Barriers to entry
(d) All of the above
Answer
C
Question. There is inverse relation between price and demand for the product of a firm under:
(a) Monopoly only
(b) Monopolistic competition only
(c) Both under monopoly and monopolistic competition
(d) Perfect competition only
Answer
C
Question. Demand curve is inelastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
B
Question. Differentiated but close substitutes exist under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
C
Question. ‘Homogenous products’ is a characteristic of:
(a) Perfect competition only
(b) Perfect oligopoly only
(c) Both (a) and (b)
(d) None of the above
Answer
C
Question. Selling cost is insignificant under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
B
Question. Demand curve of a firm is perfectly elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Answer
A
Question. When increase in demand is more than increase in supply, then equilibrium price will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
B
Question. When demand decreases and there is no shift in supply, the equilibrium price ………………. and quantity ………………. .
(a) Rises, rises
(b) Rises, falls
(c) Falls, falls
(d) Falls, rises
Answer
C
Question. Entry is restricted under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
B
Question. Demand curve is perfectly elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
A
Question. When increase in demand in more than increase in supply, then equilibrium quantity will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
B
Question. There are only a few sellers under
(a) Perfect Competition
(b) Monopolistic competition
(c) Monopoly
(d) Oligopoly
Answer
C
Question. At a price above the equilibrium price, there is:
(a) Excess supply
(b) Excess demand
(c) Ceiling
(d) Flooring
Answer
A
Question. At a price below the equilibrium price, there is:
(a) Excess supply
(b) Excess demand
(c) Ceiling
(d) Flooring
Answer
B
Question. When both demand and supply increases in the same proportion then equilibrium price will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
A
Question. Marginal revenue of a firm is constant throughout under:
(a) Perfect competition
(b) Monopolistic co
(c) Oligopoly
(d) All the above
Answer
A
Question. A seller cannot influence the market price under
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Answer
A
Question. When both demand and supply decrease in the same proportion, then the equilibrium quantity will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
C
Question. When both demand and supply decreases in the same proportion, then equilibrium price will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
A
Question. A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be:
(a) Greater than Average Revenue
(b) Less than Average Revenue
(c) Equal to Average Revenue
(d) Zero
Answer
C
Question. Differentiated products is a characteristic of:
(a) Monopolistic competition only
(b) Oligopoly only
(c) Both monopolistic competition and oligopoly
(d) Monopoly
Answer
C
Question. When both demand and supply increase in the same proportion then equilibrium quantity will:
(a) Remain the same
(b) Rise
(c) Fall
(d) None of the above
Answer
B
Fill in the blanks:
Question. The price on which demand and supply are equal, is called ………………..
Answer: Normal
Question. Increase in total revenue by the sale of additional unit of the commodity is called ………………..
Answer: Marginal revenue
Question. In perfect competition market, a firm is a ………………..
Answer: Price takes
Question. In the ………………..period demand force is more effective.
Answer: Short period
Question. A group of firms is called ………………..
Answer: Industry
Question. Price range and price floor are also called ………….. prices.
Answer: Administrative
Question. According to modem view point, rent increases because of land.
Answer: Scarcity
Question. …………….. Instrument demand is demand.
Answer: Derivative.
State true or false:
Question. Market of bricks is provincial.
Answer: False
Question. Imperfect competition is a practical approach.
Answer: True
Question. Among the forces of demand and supply, either of the two determines the price of the goods.
Answer: False
Question. Under monopolistic competition demand curve is uncertain.
Answer: True.
Question. The price floor is also called lowest fixed price.
Answer: True
Question. Price range and price floor differ from market oriented prices.
Answer: True.
Match the following:
Question.
| ‘A’ | ‘B’ |
| 1. Gold | (a) National market |
| 2. Clothes | (b) Local market |
| 3. Normal profit | (c) International market |
| 4. Equilibrium of firm | (d) AR = MR |
| 5. Milk | (e) Zero profit. |
Answer:
| ‘A’ | ‘B’ |
| 1. Gold | (c) International market |
| 2. Clothes | (a) National market |
| 3. Normal profit | (e) Zero profit. |
| 4. Equilibrium of firm | (d) AR = MR |
| 5. Milk | (b) Local market |
We hope the above multiple choice questions for Class 12 Economics for Chapter 5 Market Competition provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Market Competition is an important chapter in Class 12 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 12 students. Please go through these and let us know if you have any feedback in the comments section.