In the context of market structures, price rigidity is a feature of: MCQ with Answer and Explanation

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In the context of market structures, price rigidity is a feature of:

A. Oligopoly

B. Perfect competition

C. Monopolistic competition with free entry only

D. Monopoly with no barriers

Answer: Option A

Solution (By JKSSB Mock Tests)

Oligopolistic markets often exhibit price rigidity, explained by the kinked demand curve model, due to inter-firm interdependence.

This question belongs to: Economy GK Economy Set 1

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Question #1

Returns to scale refers to the relationship between inputs and output when:

A. all factors are changed in the same proportion

B. marginal cost is constant

C. only one factor is changed

D. technology is fixed

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Correct Answer: Option A

Explanation:
Returns to scale describe the long-run response of output when all inputs change proportionally.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on banking services to government is:

A. 0%

B. 5%

C. 18%

D. 12%

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Correct Answer: Option C

Explanation:
Banking services to government attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'multiplier-accelerator interaction' explains:

A. exchange rates

B. business cycles and fluctuations in income

C. monetary policy only

D. inflation only

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Correct Answer: Option B

Explanation:
Multiplier-accelerator interaction explains cyclical fluctuations in income.

This question belongs to: Economy GK Economy Set 1

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