In the context of market structures, 'Price Discrimination' is possible under: MCQ with Answer and Explanation

In the context of market structures, 'Price Discrimination' is possible under:
A. Monopoly
B. Perfect competition
C. Both perfect competition and monopoly equally
D. Only in agricultural markets
Answer: Option A
Solution (By JKSSB Mock Tests)
Price discrimination (charging different prices to different consumers for the same product) is typically possible under monopoly where the firm has market power and can segment markets.

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Practice More Economy Set 1 Questions

Question #1
The term 'Open Market Operations' refer to:
A. Buying and selling of goods in the open market by the government
B. Buying and selling of government securities by the central bank
C. Lending by commercial banks to the public
D. Issuing new shares by companies

Correct Answer: Option B


Explanation:
Open Market Operations involve the purchase and sale of government securities by the central bank to regulate liquidity and money supply in the economy.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Lorenz curve' is a graph showing:
A. GDP growth
B. inflation over time
C. unemployment
D. income distribution

Correct Answer: Option D


Explanation:
The Lorenz curve graphically represents the distribution of income or wealth.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Financial Stability' as an objective of central banks refers to:
A. Only growth maximisation
B. Stability of the financial system and prevention of systemic risks
C. Only price stability
D. Only exchange rate stability

Correct Answer: Option B


Explanation:
Financial stability involves the resilience of the financial system to shocks and the smooth functioning of financial intermediation without systemic disruptions.

This question belongs to: Economy GK Economy Set 1