Forms of Market Class 12 MCQs with Answers Economics are covered in this Article. Forms of Market Class 12 MCQs Test contains 60 questions. These ICSE or ISC Microeconomics Class 12 MCQ have been made for Class 12 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
Forms of Market Class 12 MCQs
Topic 1 – Market
Question 1. _____ refers to a place where commodities are bought and sold. ( Fill in the blank with correct alternative)
a)Market
b)Competitive forum
c)Market Forms of market
d)All of the above
Answer
Answer:a)Market
Question 2. Which of the following are examples of markets in India. ( Choose the correct alternative)
a)Chandni Chowk
b)Connaught place
c)Fish market
d)All of the above
Answer
Answer: d)All of the above
Question 3. The idea of the market beyond one single place has extended with the help of _____( Fill in the blank with correct alternative)
a)Development of transportation
b)Development of communication
c)The modern system of banking
d)All of the above
Answer
Answer:d)All of the above
Question 4. ________ by which buyers and sellers of a commodity can contact each other for having economic exchange is called the market. ( Fill in the blank with correct alternative
a)Mechanism
b)Arrangement
c)Both (a) and (b)
d)None of the above
Answer
Answer: c)Both (a) and (b)
Question 5. Which of the following are the features of a market. ( Choose the correct alternative)
a)The market needs to be a particular place
b)The buyers and sellers should be able to strike a deal
c)Buyers and sellers need to have a direct contact to strike a deal
d)There is no need for a system of communication
Answer
Answer: b)The buyers and sellers should be able to strike a deal
Question 6. ______ refers to the type of market in which the producers or firms operate. ( Fill in the blank with correct alternative )
a)Market economy
b)Market strategy
c)Market structure
d)Market research
Answer
Answer:c)Market structure
Question 7. Various market forms are classified based on. ( Choose the correct alternative)
a)Analysis of market strategy
b)Competitiveness of market structure
c)Strength of market economy
d)The extent of market research
Answer
Answer: b)Competitiveness of market structure
Question 8. The competitiveness of the market structure refers to ( choose the correct alternative)
a)Number of buyers in the market
b)Number of sellers in the market
c)The extent to which individual firms have the power to influence the market price of a good
d)The extent to which individual firms can influence the demand and supply of a good
Answer
Answer: c)The extent to which individual firms have the power to influence the market price of a good
Question 9. Firm A has very little power to influence the price of a commodity, as a result, the market is _____ competitive. ( Fill in the blank with correct alternative)
a)More
b)Less
c)No competition at all
d)None of the above
Answer
Answer:a)More
Question 10. Which of the following are the factors determining forms of market in a country ( choose the correct alternative)
a)Knowledge about Market
b)Nature of the product
c)Freedom of entry and exit of the firms
d)All of the above
Answer
Answer: d)All of the above
Question 11. The power of a seller to influence the market depends upon its share in the total supply. ( True/False)
Answer
Answer: True
Forms of Market Class 12 MCQs
Topic 2 – Perfect competition
Question 12. The market in which a firm has no power to influence the price of a commodity is known as. ( Choose the correct alternative)
a)Monopolistic competition
b)Oligopoly
c)Monopsony
d)Perfect competition
Answer
Answer: d)Perfect competition
Question 13. In a perfectly competitive market, the products are ( choose the correct alternative)
a)Heterogeneous
b)Homogeneous
c)Differing in nature
d)None of the above
Answer
Answer:b)Homogeneous
Question 14.In perfect competition the market price of a commodity is determined by. ( Choose the correct alternative)
a)All the firms
b)Government
c)Market prices
d)Single industry
Answer
Answer: a)All the firms
Question 15. The firm in the perfect competition is assumed to be ____( Fill in the blank with correct alternative)
a)Price maker
b)Price taker
c)Price influencer
d)Price controller
Answer
Answer: b)Price taker
Question 16. Features of perfect competition market are ; ( choose the correct alternative)
a)Large number of buyers and sellers
b)Freedom of entry and exit
c)Perfect knowledge
d)All of the above
Answer
Answer: d)All of the above
Question 17. The homogeneity of products under perfect competition refers to ( choose the correct alternative)
a)Physical characteristics of product
b)Environmental factors
c)Both (a) and (b)
d)None of the above
Answer
Answer:c)Both (a) and (b)
Question 18. The products of various firms under perfect competition are perfect substitutes of each other ( True/False ).
Answer
Answer:True
Question 19. Resources under perfect competition are mobile. (True/False )
Answer
Answer:True
Question 20. In the real world, perfect competition dominates the market structure. ( True/False )
Answer
Answer: False
Question 21. A firm in perfect competition faces a perfectly elastic average revenue curve ( True/False )
Answer
Answer: True
Forms of Market Class 12 MCQs
Topic 3 – Monopoly
Question 22. ______ is a market where there is a sole producer of goods with no close substitute . ( Fill in the blank with correct alternative)
a)Monopolistic competition
b)Perfect competition
c)Oligopoly
d)Monopoly
Answer
Answer:d)Monopoly
Question 23. The single producer under monopoly is called ( choose the correct alternative)
a)Monopolistic
b)Monopolist
c)Sole seller
d)Producer
Answer
Answer:b)Monopolist
Question 24. There are multiple sellers in the monopoly market . ( True/False)
Answer
Answer: False
Question 25. There is one single buyer of commodities under monopoly (True/False)
Answer
Answer:False
Question 26. There is one or two close substitute present for products under monopoly ( True/False )
Answer
Answer:False
Question 27._________ are known as the substitutes which are costly, inconvenient and poor. ( Choose the correct alternative)
a)Close substitutes
b)Distant substitute
c)Market substitute
c)None of the above
Answer
Answer:b)Distant substitute
Question 28. Monopoly is known as _______ due to the closed entries. ( Fill in the blank with correct alternative)
a)Barran market
b)Closed market
c)Barriers to entry
d)All of the above
Answer
Answer:b)Closed market
Question 29. Firm under monopoly market is known as ( Choose the correct alternative)
a)Price taker
b)Price maker
c)Price settler
d)Both (b) and ©
Answer
Answer:b)Price maker
Question 30. ________ refers to a situation where a producer sells the same product at different prices to different buyers. ( Fill in the blank with correct option)
a)Sellers law
b)Buyers discrimination
c)Price discrimination
d)All of the above
Answer
Answer: c)Price discrimination
Question 31. Which of the following is not a feature of monopoly. ( Choose the correct alternative)
a)Single seller
b)Price discrimination
c)Perfect knowledge
d)Closed entry
Answer
Answer:c)Perfect knowledge
Forms of Market Class 12 MCQs
Topic 4 – Monopolistic competition
Question 32. The main form of imperfect competition is ( choose the correct alternative)
a)Perfect competition
b)Monopoly
c)Monopolistic competition
d)All of the above
Answer
Answer: c)Monopolistic competition
Question 33. Theory of monopolistic competition was given by ( choose the correct alternative)
a)Edward harrings
b)Edward Chamberlin
c)Franklin
d)Norman Borlang
Answer
Answer: b)Edward Chamberlin
Question 34. ________ is the form of imperfect market in which there are large number of buyers and sellers of a particular product
(Fill in the blank with correct alternative)
a)Oligopoly
b)Monopoly
c)Monopolistic competition
d)Perfect competition
Answer
Answer: c)Monopolistic competition
Question 35. Firms under monopolistic competition are ( choose the correct alternative)
a)Price takers
b)Price makers
c)Price discriminators
d)Price coordinators
Answer
Answer:b)Price makers
Question 36. In a monopolistic market producers produce the same kind of products. ( True/False )
Answer
Answer: False
Question 37. Which of the following are features of monopolistic competition. ( choose the correct alternative)
a)Lager number of buyers and sellers
b)Differentiated products
c)Non price competition
d)All of the above
Answer
Answer: d)All of the above
Question 38. Under monopolistic competition, there is some knowledge about the market. ( True/False )
Answer
Answer: True
Question 39. _______ is the expenditure incurred by the firm to promote the sale of its product.( Fill in the blank with correct alternative)
a)Price
b)Selling cost
c)Profit
d)Production cost
Answer
Answer: b)Selling cost
Question 40. Monopolistic competition ensures ______ to make the firm price maker.( Fill in the blank with correct option)
a)Non price competition
b)Large number of buyers and sellers
c)Independent price policy
d)All of the above
Answer
Answer: c)Independent price policy
Question 41. The average revenue curve under monopolistic competition is upward sloping ( True/False )
Answer
Answer:False
Forms of Market Class 12 MCQs
Topic 5 – Oligopoly
Question 42.__________ is the form of market structure where there are few firms selling a product making the competition intense.( Fill in the blank with correct alternative)
a)Monopoly
b)Monopsony
c)Oligopoly
d)Perfect competition
Answer
Answer: c)Oligopoly
Question 43. Which of the following are the features of an oligopoly market form. (Choose the correct alternative)
a)Intense competition
b)Interdependence
c)Entry barriers
d)All of the above
Answer
Answer: d)All of the above
Question 44. Interdependence under oligopoly is important to facilitate ( choose the correct alternative)
a)Decision making
b)Intense competition
c)Selling cost
d)Profit
Answer
Answer: a)Decision making
Question 45. We can have oligopoly with and without price differentiation (True/False )
Answer
Answer: True
Question 46. _______ is an important instrument in the hands of oligopolists. ( Fill in the blank with correct option)
a)Selling cost
b)Product differentiation
c)Advertisement
d)All of the above
Answer
Answer: c)Advertisement
Question 47. The demand curve faced by an oligopolist is ( choose the correct alternative)
a)Determinate
b)Straight
c)Indeterminate
d)None of the above
Answer
Answer: c)Indeterminate
Forms of Market Class 12 MCQs
Topic 6 – Monopsony
Question 48. Monopsony is the mirror image of oligopoly ( True/False )
Answer
Answer: True
Question 49. There is a _______ of the product in monopsony. ( Fill in the blank with correct option)
a)Single seller
b)Single buyer
c)No competition
d)All of the above
Answer
Answer: b)Single buyer
Question 50. Entry into the market by other buyers is impossible under ( choose the correct alternative)
a)Oligopoly
b)Monopsony
c)Monopoly
d)Monopolistic competition
Answer
Answer: b)Monopsony
Question 51. ________ refers to the situation in which there is a Monopoly element in buying. ( Fill in the blank with correct alternative)
a)Monopoly
b)Oligopoly
c)Monopolistic competition
d)Monopsony
Answer
Answer: d)Monopsony
Question 52. Which of the following are the main features of monopsony ( choose the correct alternative)
a)Single buyer
b)A large number of sellers
c)Lack of mobility
d)All of the above
Answer
Answer: d)All of the above
Question 53. The number of sellers in monopsony are ( choose the correct alternative)
a)Single seller
b)Two sellers
c)Multiple sellers
d)Few sellers
Answer
Answer: c)Multiple sellers
Forms of Market Class 12 MCQs
Topic 7 – Miscellaneous
Question 54. Under which of the following forms of market facilitate price influencing
(Choose the correct alternative)
a)Monopoly
b)Monopolistic competition
c)Oligopoly
d)All of the above
Answer
Answer: d)All of the above
Question 55. Which of the following are an example of market forms which have limited power to influence the price of a commodity. ( Choose the correct alternative)
a)Monopoly
b)Oligopoly
c)Monopolistic competition
d)Both (b) and (c )
Answer
Answer: d)Both (b) and (c )
Question 56. There is a _______ relationship between the number of sellers in the market and the share in the total supply. ( Choose the correct alternative)
a)Positive
b)Inverse
c)Direct
d)Both ( a) and ( c)
Answer
Answer: d)Both ( a) and ( c)
Question 57. The number of buyers determines______( Fill in the blank with correct alternative)
a)Extent of control of sellers
b)Degree of control of buyers on market
c)Degree of control of sellers and buyers in market
d)All of the above
Answer
Answer: b)Degree of control of buyers on market
Question 58. Free entry and free exit ensures that all the firms will get _______ in the long run. ( Choose the correct alternative)
a)Normal profit
b)Distinguished profit
c)More profit
d)Both (a) and (b)
Answer
Answer: a)Normal profit
Question 59. There is no place for sales promotion measures under ( choose the correct alternative)
a)Perfect competition
b)Monopoly
c)Monopolistic competition
d)Both (a) and (b)
Answer
Answer: d)Both (a) and (b)
Question 60. There are no restrictions of entry and exit of firms under which market (choose the correct alternative)
a)Perfect competition
b)Monopolistic competition
c)Both (a) and (b)
d)Monopoly
Answer
Answer: c)Both (a) and (b)
Economics Class 12 ISC MCQs – Term 1
- Demand and Law of Demand MCQ Class 12
- Theory of Consumer Behaviour Class 12 MCQ
- Elasticity of Demand
- Supply – Law of Supply and Price Elasticity of Supply
- Market Mechanism
- Law of Returns
- Cost and Revenue Analysis
- Forms of Market
- Producer’s Equilibrium
- Determination of Equilibrium Price and Output under Perfect Competition