Indian Economy Multiple Choice Questions and Answers - 1

Question: 1

A firm under monopoly faces ___ demand curve.

(A) Downward sloping

(B) Upward sloping

(C) Perfectly elastic

(D) Perfectly inelastic

Ans: A

Downward sloping

Question: 2

Under perfect competition, the demand curve is

(A) Upward sloping

(B) Horizontal

(C) Vertical

(D) Downward sloping

Ans: B


Question: 3

_____ method of controlling monopoly is best to check the concentration of economic power in few hands.

(A) Controlling price and output

(B) Nationalisation

(C) Legislative

(D) Taxation

Ans: C


Question: 4

_____ method of monopoly can be applied in case of natural monopolies.

(A) Nationalisation

(B) Consumer’s association

(C) Taxation

(D) Controlling price and output

Ans: D

Controlling price and output

Question: 5

The monopolist can control

(A) Number of firms

(B) Neither price nor output

(C) Both price and output

(D) Either price or supply

Ans: D

Either price or supply

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