Unit 5: Market Analysis — Online MCQ Test
ECONOMICS · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board
Practice Unit 5: Market Analysis with a free chapter-wise online MCQ test.
This chapter covers: Focusing on market structure this chapter covers perfect competition monopoly monopolistic competition oligopoly and price determination under different market forms..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Unit 5: Market Analysis — Important Questions & Answers
Which market structure is characterized by a large number of buyers and sellers, homogeneous product, and free entry and exit?
- A. Monopoly
- B. Perfect competition
- C. Oligopoly
- D. Monopolistic competition
Answer: B. Perfect competition
Perfect competition has many buyers and sellers, identical products, and no barriers to entry or exit.
Perfect competition has many buyers and sellers, identical products, and no barriers to entry or exit.
In which market structure is there a single seller of a product with no close substitutes?
- A. Monopoly
- B. Perfect competition
- C. Monopolistic competition
- D. Oligopoly
Answer: A. Monopoly
A monopoly exists when one firm controls the entire market and the product has no close substitute.
A monopoly exists when one firm controls the entire market and the product has no close substitute.
In perfect competition, the firm is a
- A. Price maker
- B. Price taker
- C. Monopolist
- D. Cartel member
Answer: B. Price taker
A firm in perfect competition cannot influence price and must accept the market-determined price.
A firm in perfect competition cannot influence price and must accept the market-determined price.
Which market form is correctly matched with its main feature?
- A. Perfect competition — one seller controls price
- B. Monopoly — many sellers selling identical goods
- C. Oligopoly — few firms dominate the market
- D. Monopolistic competition — no product differentiation
Answer: C. Oligopoly — few firms dominate the market
Oligopoly is a market structure where a few large firms dominate the industry.
Oligopoly is a market structure where a few large firms dominate the industry.
Which of the following is the correct order from highest to lowest market power of a single firm?
- A. Perfect competition > monopolistic competition > oligopoly > monopoly
- B. Monopoly > oligopoly > monopolistic competition > perfect competition
- C. Oligopoly > monopoly > perfect competition > monopolistic competition
- D. Monopolistic competition > perfect competition > monopoly > oligopoly
Answer: B. Monopoly > oligopoly > monopolistic competition > perfect competition
A monopoly has the highest market power, followed by oligopoly; monopolistic competition has less, and perfect competition has the least.
A monopoly has the highest market power, followed by oligopoly; monopolistic competition has less, and perfect competition has the least.