Under monopoly, price in equilibrium is typically: MCQ with Answer and Explanation

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Under monopoly, price in equilibrium is typically:

A. less than marginal cost

B. zero

C. greater than marginal cost

D. equal to marginal cost

Answer: Option C

Solution (By JKSSB Mock Tests)

A monopolist charges a price greater than marginal cost and earns supernormal profit.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following taxes has NOT been subsumed under GST?

A. Central Excise Duty

B. State VAT

C. Service Tax

D. Basic Customs Duty

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Correct Answer: Option D

Explanation:
Basic Customs Duty has not been subsumed under GST.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of demand, a Giffen good is one for which:

A. Demand is independent of price

B. Demand decreases as price increases

C. Demand increases as price increases

D. Demand is perfectly elastic

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Correct Answer: Option C

Explanation:
A Giffen good is an inferior good for which the income effect outweighs the substitution effect, leading to an upward-sloping demand curve (demand rises when price rises).

This question belongs to: Economy GK Economy Set 1

Question #3

Currency with the public plus demand deposits is called:

A. narrow money

B. broad money

C. high-powered money

D. reserve money

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Correct Answer: Option A

Explanation:
Currency with the public plus demand deposits is narrow money, M1.

This question belongs to: Economy GK Economy Set 1

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