A firm under perfect competition is a price taker because: MCQ with Answer and Explanation

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A firm under perfect competition is a price taker because:

A. it differentiates its product

B. there are many buyers and sellers and the product is homogeneous

C. there are high barriers to entry

D. it controls the entire market

Answer: Option B

Solution (By JKSSB Mock Tests)

In perfect competition, many sellers produce a homogeneous product, so no single firm can influence price.

This question belongs to: Economy GK Economy Set 1

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Question #1

The concept of 'Time Inconsistency' in monetary policy was highlighted by:

A. Friedman and Schwartz

B. Keynes and Hicks

C. Kydland and Prescott

D. Modigliani and Miller

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Correct Answer: Option C

Explanation:
Kydland and Prescott demonstrated that discretionary policy can be suboptimal because policymakers have an incentive to renege on previously announced optimal plans once private agents have formed expectations.

This question belongs to: Economy GK Economy Set 1

Question #2

Non-Banking Financial Companies are regulated by:

A. Ministry of Finance

B. IRDA

C. SEBI

D. Reserve Bank of India

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Correct Answer: Option D

Explanation:
NBFCs are regulated by the Reserve Bank of India.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Samagra Shiksha Abhiyan' integrates which three schemes?

A. Teacher Education, PMKVY, UJALA

B. RMSA, ICDS, NSAP

C. SSA, MGNREGA, PMAY

D. SSA, RMSA, Teacher Education

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Correct Answer: Option D

Explanation:
Samagra Shiksha Abhiyan integrates Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan and Teacher Education.

This question belongs to: Economy GK Economy Set 1

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