A cartel is an example of: MCQ with Answer and Explanation

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A cartel is an example of:

A. collusive oligopoly

B. perfect competition

C. non-collusive oligopoly

D. monopolistic competition

Answer: Option A

Solution (By JKSSB Mock Tests)

A cartel is a formal collusive arrangement among oligopolistic firms to fix prices and output.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

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Which of the following is a measure of relative poverty?

A. Poverty line based on minimum calorie intake

B. Absolute number of poor people

C. Income share of the bottom quintile relative to the top

D. Percentage of population below a fixed income threshold

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Correct Answer: Option C

Explanation:
Relative poverty is measured in relation to the overall distribution of income in society, such as the income share of the poorest relative to the richest.

This question belongs to: Economy GK Economy Set 1

Question #2

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Which of the following is a characteristic of oligopoly?

A. Interdependence among firms

B. Homogeneous product with free entry

C. Large number of independent sellers

D. Perfect information and no barriers

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Correct Answer: Option A

Explanation:
Oligopoly is characterised by a few firms that are interdependent in their decision-making, as the actions of one firm affect the others.

This question belongs to: Economy GK Economy Set 1