Business Economics - Questions and Answers for Competitive Exams | GkSeries

49. A distinguishing characteristic of monopolistic competition is

• [A] Large number of firms
• [B] Low entry barriers
• [C] Product standardisation
• [D] Product differentiation

Answer: Option [D]

50. In case of perfect competition, no of selling firm would be

• [A] Large
• [B] Single
• [C] Varied but too many
• [D] None of the above

Answer: Option [A]

51. Which of the following is a characteristic of a perfectly competitive market?

• [A] Firms are price setters.
• [B] There are few sellers in the market.
• [C] Firms can exit and enter the market freely
• [D] All of the above are correct.

Answer: Option [C]

52. When firms have an incentive to exit a competitive market, their exit will ____________.

• [A] drive down market prices
• [B] drive down profits of existing firms in the market.
• [C] decrease the quantity of goods supplied in the market.
• [D] All of the above are correct.

Answer: Option [D]

53. Bank rate is also known as __________.

• [A] lending rate
• [B] interest rate
• [C] CRR
• [D] SDR

Answer: Option [D]

54. According to monetarists, the Great Depression in the United States largely resulted from _____________.

• [A] excessive imports relative to exports
• [B] significant changes in technology and resource availability.
• [C] inappropriate monetary policy
• [D] excessive exports relative to imports.

Answer: Option [A]

55. The study of ups and downs in economics is ____________

• [A] Monetary policy
• [B] Fiscal policy
• [C] Business cycle
• [D] None

Answer: Option [C]

56. In the _____________ phase , demand, output, employment and income are at a high level

• [A] Depression
• [B] Recession
• [C] Boom
• [D] Recovery

Answer: Option [C]

57. The measures to control business cycle are _________

• [A] Monetary policy
• [B] Fiscal policy
• [C] Direct controls
• [D] All of the above

Answer: Option [D]

58. When national income of a country is calculated in terms of constant prices, it is called as _________

• [A] Nominal GNP
• [B] GNP at current prices
• [C] GNP at constant prices
• [D] GDP at constant prices

Answer: Option [C]

59. Inflation means ___________

• [A] More money less value
• [B] Less money high value
• [C] More money more value
• [D] Less money less value

Answer: Option [A]

60. When the rise in price is very slow like that of a creeper, it is called _____________

• [A] Walking Inflation
• [B] Creeping Inflation
• [C] Running Inflation
• [D] True inflation

Answer: Option [B]