Which of the following is a feature of monopolistic competition? MCQ with Answer and Explanation

Which of the following is a feature of monopolistic competition?
A. Single seller
B. Perfect knowledge and free entry without costs
C. Product differentiation
D. Homogeneous product
Answer: Option C
Solution (By JKSSB Mock Tests)
Monopolistic competition is characterised by product differentiation, a large number of firms, free entry and exit, and some degree of price control by firms.

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Practice More Economy Set 1 Questions

Question #1
The LM curve shows combinations of income and interest rate where:
A. goods market is in equilibrium
B. money market is in equilibrium
C. balance of payments is in equilibrium
D. labour market is in equilibrium

Correct Answer: Option B


Explanation:
The LM curve represents equilibrium in the money market.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Family Health Survey' is conducted by:
A. Ministry of Health and Family Welfare with IIPS
B. NSSO
C. NITI Aayog
D. RBI

Correct Answer: Option A


Explanation:
NFHS is conducted by the Ministry of Health and Family Welfare with the International Institute for Population Sciences.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Minimum Wages Act' applies to:
A. only informal sector
B. scheduled employments including agricultural and industrial workers
C. only factory workers
D. only government employees

Correct Answer: Option B


Explanation:
Minimum Wages Act applies to scheduled employments including agriculture and industry.

This question belongs to: Economy GK Economy Set 1