Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Perfect Competition and Price Determination — Practice Worksheet
Name: ____________________
Roll No.: __________
Date: ____________
General Instructions
- All questions are compulsory.
- Choose the correct option (A, B, C or D) for each question.
- The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each)
15 × 1 = 15 marks
1.
In economics, a market is any arrangement where buyers and sellers:
- A.Fight
- B.Come into contact to exchange goods
- C.Only store goods
- D.Pay taxes only
2.
Which is NOT a main market structure?
- A.Perfect competition
- B.Monopoly
- C.Oligopoly
- D.Equilibrium
3.
Under perfect competition, the product is:
- A.Homogeneous (identical)
- B.Branded
- C.Unique
- D.Differentiated
4.
A perfectly competitive firm is a:
- A.Price maker
- B.Price taker
- C.Monopolist
- D.Leader
5.
A feature of perfect competition is:
- A.Free entry and exit of firms
- B.One seller only
- C.Branded goods
- D.Government control
6.
In a competitive market, the price is determined by:
- A.A single firm
- B.Market demand and supply
- C.The government always
- D.One buyer
7.
Equilibrium price is where quantity demanded equals quantity:
- A.Supplied
- B.Produced
- C.Stocked
- D.Taxed
8.
At equilibrium, the market has:
- A.A shortage
- B.A surplus
- C.Neither shortage nor surplus
- D.No buyers
9.
At a price above equilibrium, there is a:
- A.Shortage
- B.Surplus
- C.Balance
- D.Tax
10.
At a price below equilibrium, there is a:
- A.Surplus
- B.Shortage
- C.Balance
- D.No effect
11.
If demand increases and supply is unchanged, equilibrium price:
- A.Rises
- B.Falls
- C.Stays the same
- D.Becomes zero
12.
A government-set maximum price below equilibrium is a:
- A.Price floor
- B.Price ceiling
- C.Tax
- D.Subsidy
13.
A price ceiling causes a:
- A.Surplus
- B.Shortage
- C.Balance
- D.Higher supply
14.
A government-set minimum price above equilibrium is a:
- A.Price ceiling
- B.Price floor
- C.Black market
- D.Ration
15.
The minimum support price (MSP) for crops is an example of a:
- A.Price ceiling
- B.Price floor
- C.Tax
- D.Subsidy
Section B — Challenge / Olympiad (2 marks each)
10 × 2 = 20 marks
16.
A single farmer in a huge wheat market cannot change the wheat price because perfect competition has:
- A.So many sellers of an identical product that one cannot affect price
- B.Only one seller
- C.Branded products
- D.Government price-setting
17.
At a price above equilibrium, the resulting surplus pushes the price:
- A.Down toward equilibrium
- B.Further up
- C.To zero
- D.Nowhere
18.
A bad harvest shifts the supply of onions left while demand is unchanged. The equilibrium price will:
- A.Rise and quantity fall
- B.Fall and quantity rise
- C.Stay the same
- D.Become zero
19.
A government fixes the price of a medicine below its equilibrium to keep it affordable. A likely result is:
- A.A shortage, possibly with rationing or a black market
- B.A surplus
- C.No effect
- D.Higher supply
20.
The MSP guarantees farmers a price above the market level. To prevent unsold surplus harming farmers, the government usually:
- A.Buys up the surplus produce
- B.Bans farming
- C.Lowers the MSP to equilibrium
- D.Ignores it
21.
Both an increase in demand and an increase in supply raise the equilibrium quantity, but they affect price differently: demand up raises price while supply up:
- A.Lowers price
- B.Also raises price
- C.Leaves price unchanged always
- D.Removes price
22.
A price ceiling only causes a shortage if it is set:
- A.Below the equilibrium price
- B.Above the equilibrium price
- C.At the equilibrium price
- D.At zero
23.
Free entry of firms in perfect competition means that, if existing firms earn high profits, new firms will:
- A.Enter, raising supply and pushing price down
- B.Be banned
- C.Leave the market
- D.Set the price
24.
If both demand and supply rise by the same amount, the equilibrium quantity rises and the equilibrium price:
- A.Stays roughly unchanged
- B.Always doubles
- C.Falls to zero
- D.Becomes negative
25.
The whole point of demand–supply analysis is shown by price controls: a ceiling helps ____ and a floor helps ____.
- A.Buyers; sellers
- B.Sellers; buyers
- C.No one; everyone
- D.Government; no one
Answer Key
Section A — Multiple Choice (1 mark each)
- (B) Come into contact to exchange goods
- (D) Equilibrium
- (A) Homogeneous (identical)
- (B) Price taker
- (A) Free entry and exit of firms
- (B) Market demand and supply
- (A) Supplied
- (C) Neither shortage nor surplus
- (B) Surplus
- (B) Shortage
- (A) Rises
- (B) Price ceiling
- (B) Shortage
- (B) Price floor
- (B) Price floor
Section B — Challenge / Olympiad (2 marks each)
- (A) So many sellers of an identical product that one cannot affect price
- (A) Down toward equilibrium
- (A) Rise and quantity fall
- (A) A shortage, possibly with rationing or a black market
- (A) Buys up the surplus produce
- (A) Lowers price
- (A) Below the equilibrium price
- (A) Enter, raising supply and pushing price down
- (A) Stays roughly unchanged
- (A) Buyers; sellers
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