The kinked demand curve model is used to explain price rigidity in: MCQ with Answer and Explanation

Question

Share Report Error

The kinked demand curve model is used to explain price rigidity in:

A. monopsony

B. perfect competition

C. monopoly

D. oligopoly

Answer: Option D

Solution (By JKSSB Mock Tests)

The kinked demand curve explains why oligopolistic firms avoid changing prices.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The concept of 'Debt Overhang' refers to:

A. A situation of low public debt

B. A situation where existing debt is so large that it discourages new investment

C. Only short-term liquidity problems

D. Only household debt

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Debt overhang occurs when a high level of existing debt reduces the incentive for new investment because a large part of the returns would accrue to existing creditors rather than to the investor.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'World Economic Forum' publishes which index?

A. Logistics Performance Index

B. Human Development Index

C. Global Competitiveness Index

D. Corruption Perceptions Index

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
WEF publishes Global Competitiveness Index.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Intellectual Property Rights Policy' was released in India in which year?

A. 2016

B. 2013

C. 2020

D. 2018

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
The National IPR Policy was released in 2016.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs