Principles Of Micro Economics Set 7
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This set of Principles of Micro Economics Multiple Choice Questions & Answers (MCQs) focuses on Principles Of Micro Economics Set 7
Q1 | If a positively sloped linear supply curve crosses the quantity axis, theelasticity of supply is:
- Inelastic
- Elastic
- Unitary elastic
- Perfectly elastic
Q2 | The horizontal supply curve parallel to quantity axis represents:
- Elastic supply
- Inelastic supply
- Perfectly elastic supply
- Perfectly inelastic supply
Q3 | A fall in income of the consumer, other things being equal, causes:
- Increase in demand
- Decrease in demand
- Increase in quantity demanded
- Decease in quantity demanded
Q4 | Which of the following causes an increase in supply:
- Fall in price of inputs
- Increase in number of producers
- Decrease in the price of production substitutes
- All of the above
Q5 | Cross elasticity of demand in the case of substitutes:
- Zero
- Negative
- Positive
- Infinity
Q6 | A movement down the given demand curve shows:
- Increase in demand
- Decrease in demand
- Extension in demand
- Contraction in demand
Q7 | Which of the following results in an increase in an increase in demand:
- Fall in prices of substitutes
- Increase in price of complementary goods
- Fall in consumer’s income
- None of the above
Q8 | Change in quantity supplied of a product can result from:
- Changes in own price
- Changes in cost of production
- Change in technology
- Change in price of related products
Q9 | An increase in supply means:
- Movement down given supply curve
- Movement upward given supply curve
- Leftward shift in supply curve
- Rightward shift in supply curve
Q10 | At prices above the equilibrium price:
- Quantity supplied exceeds quantity demanded
- Quantity demanded exceeds quantity supplied
- There is shortage
- All of the above is possible
Q11 | An increase in market supply, demand remaining the same causes:
- Increase in equilibrium price
- Decrease in equilibrium quantity
- Decrease in equilibrium price and increase in equilibrium quantity
- Both equilibrium price and quantity rises
Q12 | An increase in market demand, supply remaining the same results in:
- Decrease in equilibrium price
- Decrease in equilibrium quantity
- Decrease in equilibrium price and increase in equilibrium quantity
- Both equilibrium price and quantity rises
Q13 | A fall in the market demand, supply remaining the same results in:
- Increase in equilibrium price
- Increase in equilibrium quantity
- Increase in equilibrium price and decrease in equilibrium quantity
- Both equilibrium price and quantity falls
Q14 | Which one of the following elasticities takes the average of prices andquantities:
- Point elasticity of demand
- Arc elasticity of demand
- Income elasticity of demand
- Cross elasticity of demand
Q15 | When demand curve is rectangular hyperbola, the value of price elasticity ofdemand will be:
- Zero
- One
- Greater than one
- Infinity