Factor Pricing & Market Structures

JKSSB Panchayat Account 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. Oligopsony
  2. Monopoly
  3. Duopoly
  4. Monopsony
Show answer

Answer: C. Duopoly means two sellers. A monopsony has a single buyer.

Sample Medium question 2

The demand (average revenue) curve facing a single firm under perfect competition is:

  1. Kinked at the market price
  2. Horizontal (perfectly elastic)
  3. Downward sloping to the right
  4. Vertical (perfectly inelastic)
Show answer

Answer: B. The firm can sell any quantity at the market price, so AR = MR = price, a horizontal line.

Sample Hard question 3

What does the 'law of production' generally describe?

  1. The relationship between inputs used and the resulting output
  2. Only the cost of the raw materials that are used by a firm
  3. Only the profit that a firm earns from selling its product
  4. Only the demand for the product among the consumers
Show answer

Answer: A. Laws of production describe how output changes as input quantities are varied.

More General Economics topics for JKSSB Panchayat Account Assistant

Related articles