11. Which of the following most closely approximates our definition of oligopoly ?[SSC Combined CGL Prelim 1999]
A. The cigarette industry
B. The barber shops
C. The gasoline stations
D. Wheat farmers
Answer – A. The cigarette industry
Explanation-
12. Different firms constituting the industry, produce homogeneous goods under[SSC Combined Matric Level (PRE) 2002]
A. monopoly
B. monopolistic competition
C. oligopoly
D. perfect competition
Answer – D. perfect competition
Explanation-
13. Economies of Scale means reduction in:[SSC Tax Assistant (Income Tax & Central Excise) 2007]
A. unit cost of production
B. unit cost of distribution
C. total cost of production
D. total cost of distribution
Answer –A. unit cost of production
Explanation-
14. The ‘break-even’ point is where:[SSC CGL Tier-I 2011]
A. marginal revenue equals marginal cost
B. average revenue equals average cost
C. total revenue equals total cost
D. None of the above
Answer –C. total revenue equals total cost
Explanation-
15. Which of the following are not fixed costs?[SSC Combined Matric Level (PRE) 2001]
A. Rent on land
B. Municipal taxes
C. Wages paid to workers
D. Insurance charges
Answer –C. Wages paid to workers
Explanation-
16. If the price of an inferior good falls, its demand…[SSC CPO Sub-Inspector 2003]
A. rises
B. falls
C. remains constant
D. can be any of the above
Answer –A. rises
Explanation-
17. Extension or contraction of quantity demanded of a commodity is a result of a change in the…..[SSC Tax Assistant (Income Tax & Central Excise) 2008]
A. unit price of the commodity
B. income of the consumer
C. tastes of the consumer
D. climate of the region
Answer –A. unit price of the commodity
Explanation-
18. The size of the market for a product refers to…..[SSC Combined Matric Level (PRE) 2001]
A. the number of people in the given area
B. the geographical area served by the proudcers
C. the volume of potential sales of the product
D. the number of potential buyers of the product
Answer –D. the number of potential buyers of the product
Explanation-
19. Sellers market denotes a situation where :[SSC Statistical Investigators Grade–IV 2005]
A. commodities are available at competitive rates
B. demand exceeds supply
C. supply exceeds demand
D. supply and demand are evenly balanced
Answer –B. demand exceeds supply
Explanation-
20. One of the essential conditions of perfect competition is :[SSC CGL Prelims 1999]
A. product differentiation
B. multiplicity of prices for identical products at any one time
C. many sellers and a few buyers
D. Only one price for identical goods at any one time
Answer –D. Only one price for identical goods at any one time
Explanation-