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

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

A. perfect competition

B. monopsony

C. oligopoly

D. monopoly

Answer: Option C

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

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Question #1

Which of the following is a type of elasticity of demand?

A. Only production elasticity

B. Only supply elasticity

C. Only cost elasticity

D. Price elasticity, income elasticity and cross elasticity

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Correct Answer: Option D

Explanation:
The main types of demand elasticity are price elasticity of demand, income elasticity of demand and cross elasticity of demand.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Human Capital Formation' includes investment in:

A. machinery

B. education, health and training

C. financial assets

D. physical infrastructure only

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Correct Answer: Option B

Explanation:
Human capital formation involves education, health and training investments.

This question belongs to: Economy GK Economy Set 1

Question #3

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

A. 5%

B. 28%

C. 18%

D. 12%

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Correct Answer: Option C

Explanation:
Housekeeping services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

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