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

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Which of the following is a feature of the monopolistic competition market structure?

A. Perfect knowledge and no advertising

B. Product differentiation and selling costs

C. Homogeneous product

D. Single seller

Answer: Option B

Solution (By JKSSB Mock Tests)

Monopolistic competition is characterised by product differentiation, a large number of firms, free entry and exit, and significant selling costs.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on demerit goods is generally:

A. 18%

B. 12%

C. 5%

D. 28% plus cess

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Correct Answer: Option D

Explanation:
Demerit goods like tobacco and aerated drinks attract 28% plus cess.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'industrial licensing' after 1991 was retained for certain industries related to:

A. textiles

B. food processing

C. consumer goods

D. security, strategic and environmental concerns

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Correct Answer: Option D

Explanation:
Licensing was retained for industries related to security, strategic and environmental concerns.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' was first proposed in India by:

A. Gadgil Committee

B. RBI

C. Kelkar Task Force on FRBM? Actually Chelliah Committee

D. Narasimham Committee

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Correct Answer: Option C

Explanation:
GST was first proposed by the Chelliah Committee on tax reforms, not Kelkar.

This question belongs to: Economy GK Economy Set 1

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