Factor Pricing & Market Structures

JKSSB Finance Accounts Assistant · General Economics · 15 practice questions with answers and explanations: 3 Easy, 7 Medium, 5 Hard.

Sample questions

Sample Easy question 1

A market with only two sellers is called a:

  1. Duopoly
  2. Monopoly
  3. Monopsony
  4. Oligopsony
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Answer: A. Duopoly means two sellers. A monopsony has a single buyer.

Sample Medium question 2

What is the 'marginal productivity theory' primarily used to explain?

  1. How the price of a factor of production is determined by its marginal contribution to output
  2. The total cost of production
  3. The price of finished goods only
  4. The exchange rate
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Answer: A. This theory holds that a factor's price reflects the extra output it contributes at the margin.

Sample Hard question 3

What are the 'factors of production'?

  1. Land, labor, capital, and entrepreneurship
  2. Only labor and capital
  3. Only money and machines
  4. Only government resources
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Answer: A. The four classical factors of production are land, labor, capital, and entrepreneurship.

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