General Awareness: Microeconomics Quiz

1. In Duopoly, there is/are

A. Many firms
B. Two firms controlling the Market
C. Large corporations
D. None of the above

The correct answer is B. Two firms controlling the Market

2. Model of Monopolistic Competition (i.e Imperfect competition) is characterized by

A. Homogeneous goods
B. Differentiated goods
C. Substitute Goods
D. All of the above

The correct answer is B. Differentiated goods

3. Price discrimination is a situation when a producer

A. charges different prices in different markets
B. charges same price
C. Charges many prices
D. All of the above.

The correct answer is A. charges different prices in different markets

4. Monopoly is a form of market where there is

A. large number of buyer
B. Small number of buyer
C. A single firm controlling the market
D. Any of the above

The correct answer is C. A single firm controlling the market

5. Shape of Total Fixed Cost(TFC) Curve is

A. Verticle
B. Horizontal
C. 45 degree line
D. None of the above

The correct answer is B. Horizontal

6. Production Functions Shows

A. Prices of input and output
B. Relationship between output and input
C. various combinations of inputs
D. All of the above

The correct answer is B. Relationship between output and input

7. Law of Demand states that

A. with the increase in price Quantity increases
B. with the increase in price quantity decreases other things remaining the same.
C. quantity does not change with any increase in price.
D. All of the above.

The correct answer is B. with the increase in price quantity decreases other things remaining the same.

8. What Microeconomics is about?

A. Study of Business Environment
B. Study of financial position of the economy
C. Study of the Economy at Micro Level
D. None of the above

The correct answer is C. Study of the Economy at Micro Level

9. While in Perfect Competition

A. Firms are price taker
B. Buyers are independant
C. Input prices are given
D. None of the above

The correct answer is A. Firms are price taker