MCQ Questions for Class 11 Economics Chapter 5 Market Equilibrium with Answers

Check the below NCERT MCQ Questions for Class 11 Economics Chapter 5 Market Equilibrium with Answers Pdf free download. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. We have provided Market Equilibrium Class 11 Economics MCQs Questions with Answers to help students understand the concept very well.

Market Equilibrium Class 11 MCQs Questions with Answers

MCQ On Market Equilibrium Class 11 Chapter 5 Question 1.
Which is a characteristic of the market ?
(a) One Area
(b) Presence of both Buyers and Sellers
(c) Single Price of the Commodity
(d) All the above

Answer

Answer: (d) All the above


MCQ On Market Mechanism Class 11 Chapter 5 Question 2.
Which is a basic for the classification of the market ?
(a) Perfect Competition
(b) Zero Competition (Monopoly)
(c) Imperfect Competition
(d) All the above

Answer

Answer: (d) All the above


Market Equilibrium Relates To MCQ Class 11 Chapter 5 Question 3.
Which of the following is a feature of perfect competition ?
(a) Large Number of Buyers and Sellers
(b) Homogeneous Units of the Product
(c) Perfect Knowledge of the Market
(d) All the above

Answer

Answer: (d) All the above


Market Equilibrium MCQ Class 11 Chapter 5 Question 4.
In which market product differentiation is found ?
(a) Pure Competition
(b) Perfect Competition
(c) Monopoly
(d) Monopolistic Competition

Answer

Answer: (c) Monopoly


Class 11 Economics Chapter 5 MCQ  Question 5.
Which of the following is true in perfect competition ?
(a) Firm is price-taker, not price-maker
(b) Firm’s demand curve is perfectly elastic
(c) AR = MR
(d) All the above

Answer

Answer: (d) All the above


MCQ Questions For Class 11 Statistics Economics Chapter 5 Question 6.
Which one is a feature of monopoly ?
(a) Single Seller and Many Buyers
(b) Lack of Close Substitutes
(c) Restrictions of New Firm entry
(d) All of these

Answer

Answer: (d) All of these


MCQ Questions On Market Equilibrium Class 11 Chapter 5 Question 7.
Which one of the following is true for monopoly ?
(a) Firm is price-maker
(b) Demand curve slopes downward
(c) Price discrimination possibility arises
(d) All the above

Answer

Answer: (d) All the above


Ch 5 Economics Class 11 MCQ Question 8.
Which one is a feature of monopolistic competition ?
(a) Differentiated Product
(b) Selling Cost
(c) Imperfect Knowledge of the Market
(d) All the above

Answer

Answer: (d) All the above


Question 9.
A market in which there is free entry and exit, the market is:
(a) Monopolistic Competitive Market
(b) Imperfect Competitive Market
(c) Perfectly Competitive Market
(d) None of these

Answer

Answer: (c) Perfectly Competitive Market


Question 10.
What does a monopolist market show ?
(a) Production process
(b) Distribution system
(c) Nature of market
(d) None of these

Answer

Answer: (c) Nature of market


Question 11.
Price discrimination is found in which market ?
(a) Pure Competition
(b) Perfect Competition
(c) Monopoly
(d) Monopolistic Competition

Answer

Answer: (c) Monopoly


Question 12.
Which of the following is the feature of pure competition ?
(a) Perfect knowledge of the market
(b) Perfect mobility of factors
(c) Homogenity by products
(d) All the above

Answer

Answer: (d) All the above


Question 13.
Market situation where there is only one buyer is:
(a) Monopoly
(b) Monopsony
(c) Duropoly
(d) None of these

Answer

Answer: (b) Monopsony


Question 14.
The concept of monopolistic competition is given by:
(a) Hicks
(b) Chamberlin
(c) Mrs. Robinson
(d) Samuelson

Answer

Answer: (b) Chamberlin


Question 15.
Which of the following is not a feature of perfect competition ?
(a) Large number of buyers and sellers
(b) Homogeneity of product
(c) Advertisement and selling cost
(d) Perfect knowledge of the market

Answer

Answer: (c) Advertisement and selling cost


Question 16.
In which market is AR equal to MR ?
(a) Perfect competition
(b) Oligopoly
(c) Imperfect competition
(d) Monopoly

Answer

Answer: (a) Perfect competition


Question 17.
Which factor determines Equilibrium Price ?
(a) Demand for Commodity
(b) Supply of Commodity
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)


Question 18.
“Price is determined by Demand and Supply. Whose statement is this ?
(a) Jevons
(b) Walras
(c) Marshall
(d) None of these

Answer

Answer: (c) Marshall


Question 19.
Price of a commodity is determined at a point where :
(a) Demand exceeds
(b) Supply exceeds
(c) Demand equals supply
(d) None of these

Answer

Answer: (c) Demand equals supply


Question 20.
What is true for perfect competition market ?
(a) Price is determined by both Demand and Supply Forces
(b) Price is determined by the industry
(c) Each firm of the industry is Price-taker
(d) All the above

Answer

Answer: (d) All the above


Question 21.
Who gave the concept of ‘Time Element’ in price determination process ?
(a) Ricardo
(b) Walras
(c) Marshall
(d) J. K. Mehta

Answer

Answer: (c) Marshall


Question 22.
How many categories of production duration have been made by Marshall on the basis of supply ?
(a) Two
(b) Three
(c) Four
(d) Seven

Answer

Answer: (b) Three


Question 23.
Which is a reason of change in demand ?
(a) Change in Consumer’s Income
(b) Change in Prices of Related Goods
(c) Population increase
(d) All the above

Answer

Answer: (d) All the above


Question 24.
Which statement is correct ?
(a) In very short period, supply is perfectly inelastic, price is affected by both demand conditions.
(b) Supply curve elasticity depends on time period
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)


Question 25.
Market Price is found in:
(a) Short Period Market
(b) Long Period Market
(c) Very Long Period Market
(d) None of these

Answer

Answer: (a) Short Period Market


Question 26.
The price of a good is determined by:
(a) Demand
(b) Supply
(c) Both demand and supply
(d) Government

Answer

Answer: (c) Both demand and supply


Question 27.
Market price is associated with:
(a) Price of very short period
(b) Normal price
(c) Permanent price
(d) All of these

Answer

Answer: (a) Price of very short period


Question 28.
The price of a goods in perfect competition is determined by:
(a) Bargaining
(b) Production cost
(c) Marginal utility
(d) Demand and supply

Answer

Answer: (d) Demand and supply


Question 29.
In perfect competition, a firm:
(a) Determines price
(b) Obtains price
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Obtains price


Question 30.
In very short period, supply will be:
(a) Perfectly elastic
(b) Perfectly Inelastic
(c) Elastic
(d) None of these

Answer

Answer: (b) Perfectly Inelastic


Question 31.
Which is not a condition for equilibrium of a monopoly form ?
(a) Average Revenue = Marginal Cost
(b) Marginal Revenue = Marginal Cost
(c) Marginal Cost should cut the Marginal Revenue Curve from below
(d) Both (b) and (c)

Answer

Answer: (a) Average Revenue = Marginal Cost


Question 32.
In perfect competition, these is……. profit
(a) Normal
(b) Maximum
(c) Zero
(d) None of these

Answer

Answer: (a) Normal


Question 33.
A Seller Cannot influence the market price under:
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic Competition
(d) All of these

Answer

Answer: (a) Perfect Competition


Question 34.
Which determines the equilibrium price ?
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)


Question 35.
Which is the component of factor price determination ?
(a) Rent
(b) Wages
(c) Interest
(d) All of these

Answer

Answer: (d) All of these


Question 36.
Price of a goods is determined at a point where :
(a) Demand > Supply
(b) Demand < Supply
(c) Demand = Supply
(d) None of these

Answer

Answer: (c) Demand = Supply


Question 37.
None of these Rent is = ?
(a) Actual Income – Transfer Earnings
(b) Actual Income + Transfer Earnings
(c) Transfer Earnings
(d) None of these

Answer

Answer: (a) Actual Income – Transfer Earnings


Question 38.
Which of the following is correct ?
(a) Labour Demand comes from producer
(b) Demand of labour depends on its productivity.
(c) Marginal productivity of labour is its maximum wage
(d) All the above

Answer

Answer: (d) All the above


Question 39.
Main feature of perfectly competitive market is:
(a) Uniform price
(b) Homogeneous product
(c) Large number of buyers and sellers
(d) All of the above.

Answer

Answer: (d) All of the above.


Question 40.
The market in which there is free entry and exit is:
(a) Monopolistic competition market
(b) Imperfect competition market
(c) Perfect competitions market
(d) None of these.

Answer

Answer: (c) Perfect competitions market


Question 41.
There is inverse relation between demand and price of goods in:
(a) Only monopoly
(b) Only monopolistic competition
(c) Both (a) and (b)
(d) Only perfect competition.

Answer

Answer: (d) Only perfect competition.


Question 42.
According to which economist “Price of a commodity is determined by the forces of demand and supply”:
(a) Jevons
(b) Valros
(c) Marshall
(d) None of these.

Answer

Answer: (c) Marshall


Question 43.
Not a condition of equilibrium of monopoly firm:
(a) Average revenue = Marginal revenue
(b) Marginal revenue = Marginal cost
(c) Marginal cost curve cuts marginal revenue curve from downwards.
(d) Both (b) and (c).

Answer

Answer: (a) Average revenue = Marginal revenue


Question 44.
Market price is found in:
(a) Short period market
(b) Long period market
(c) Very long period market
(d) None of these.

Answer

Answer: (a) Short period market


Question 45.
Demand curve of a firm is perfectly elastic in:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly.

Answer

Answer: (a) Perfect competition


Questions 46.
Administrative price is:
(a) Price ceiling
(b) Price floor
(c) Both (a) and (b)
(d) None of these.

Answer

Answer: (c) Both (a) and (b)


Questions 47.
Minimum support price of wheat is called:
(a) Price ceiling
(b) Price floor
(c) Market price
(d) Equilibrium price.

Answer

Answer: (b) Price floor


Questions 48.
Which of the following is the component of instrument pricing:
(a) Rent
(b) Wages
(c) Interest
(d) None of these.

Answer

Answer: (c) Interest


Questions 49.
Which factors help in the determination of equilibrium price:
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above.

Answer

Answer: (d) None of the above


Questions 50.
Which among the following statement is not true:
(a) Demand of labor is done by the producer
(b) Demand of labor depends open its productivity
(c) Marginal productivity of a labor is his maximum wages
(d) All of the above.

Answer

Answer: (d) All of the above


Questions 51.
Excess demand can be seen in:
(a) Fixed market price
(b) Lowest fixed price
(c) Highest fixed price
(d) None of these.

Answer

Answer: (c) Highest fixed price


Fill in the blanks:

1. The price on which demand and supply are equal, is called ………………..

Answer

Answer: Normal


2. Price discrimination is possible in ……………….. market.

Answer

Answer: Monopolistic


3. Increase in total revenue by the sale of additional unit of the commodity is called ………………..

Answer

Answer: Marginal revenue


4. If the supply of any good remains unchanged, and with the increase in demand its ……………….. increases.

Answer

Answer: Increase


5. In perfect competition market, a firm is a ………………..

Answer

Answer: Price takes


6. Price ceiling is done by the ………………..

Answer

Answer: Government


7. In the ………………..period demand force is more effective.

Answer

Answer: Short period


8. In ………………..market there should be two or more two firms.

Answer

Answer: Oligopoly


9. A group of firms is called ………………..

Answer

Answer: Industry


10. The market for petrol is ………………..

Answer

Answer: International.


11. Price range and price floor are also called ………….. prices.

Answer

Answer: Administrative


12. The other name of minimum determined price is ………………..

Answer

Answer: Price floor


13. According to modem view point, rent increases because of land.

Answer

Answer: Scarcity


14. ………….. presented FAD principle.

Answer

Answer: Prof. Amartya Sen


15. …………….. Instrument demand is demand.

Answer

Answer: Derivative.


State true or false:

1. Market of bricks is provincial.

Answer

Answer: False


2. Normal price is imaginary.

Answer

Answer: True


3. Imperfect competition is a practical approach.

Answer

Answer: True


4. The forces of demand and supply remains in the state of equilibrium for a long period.

Answer

Answer: False


5. Among the forces of demand and supply, either of the two determines the price of the goods.

Answer

Answer: False


6. Under perfect competition firms themselves determine the price.

Answer

Answer: False


7. Under monopolistic competition demand curve is uncertain.

Answer

Answer: True.


8. Main objective of price range determination is to earn profit.

Answer

Answer: False


9. The price floor is also called lowest fixed price.

Answer

Answer: True


10. In independent market system, prices of goods and services are determined by the forces of demand and supply.

Answer

Answer: True


11. Price range and price floor differ from market oriented prices.

Answer

Answer: True.


Match the following:

1.

‘A’ ‘B’
1. Gold (a) National market
2. Clothes (b) Local market
3. Normal profit (c) International market
4. Equilibrium of firm (d) AR = MR
5. Milk (e) Zero profit.
Answer

Answer:

‘A’ ‘B’
1. Gold (c) International market
2. Clothes (a) National market
3. Normal profit (e) Zero profit.
4. Equilibrium of firm (d) AR = MR
5. Milk (b) Local market

2.

‘A’ ‘B’
1. Price range (a) Excess supply
2. Price floor (b) Public Distribution System
3. Problem of price floor (c) Minimum wage provision.
Answer

Answer:

‘A’ ‘B’
1. Price range (b) Public Distribution System
2. Price floor (c) Minimum wage provision.
3. Problem of price floor (a) Excess supply

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