First-degree price discrimination occurs when a monopolist: MCQ with Answer and Explanation

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First-degree price discrimination occurs when a monopolist:

A. charges a single uniform price

B. charges each consumer the maximum price they are willing to pay

C. sells in bulk at a lower price

D. charges different prices in different markets

Answer: Option B

Solution (By JKSSB Mock Tests)

First-degree price discrimination, also called perfect price discrimination, charges each consumer their maximum willingness to pay.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on veterinary services is:

A. 5%

B. exempt

C. 0%

D. 18%

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Correct Answer: Option B

Explanation:
Veterinary services are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #2

A price floor set above the equilibrium price generally creates:

A. shortage

B. surplus

C. increase in demand

D. no change

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Correct Answer: Option B

Explanation:
A price floor above equilibrium creates excess supply or a surplus.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is classified under the primary sector?

A. Transport

B. Banking

C. Mining

D. Automobile manufacturing

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Correct Answer: Option C

Explanation:
The primary sector includes agriculture, mining, fishing and forestry.

This question belongs to: Economy GK Economy Set 1

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