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This set of Basics of Economics Multiple Choice Questions & Answers (MCQs) focuses on Basics Of Economics Set 3

Q1 | In drawing an individual demand curve for a commodity, all but whichof the following are kept constant:
Q2 | When an individual’s income rises, when everything else remains thesame, his demand for normal goods:
Q3 | When an individual’s income falls, when everything else remains thesame, his demand for inferior goods:
Q4 | When the price of the substitute commodity of X falls, the demand for X:
Q5 | If the quantity demanded remains unchanged as the price of thecommodity falls, the coefficient of price elasticity of demand is:
Q6 | If the income elasticity of demand is greater than one, then thecommodity is:
Q7 | Which of the following is an exception to the law of demand?
Q8 | The law of diminishing marginal utility was popularized by:
Q9 | If the income elasticity of demand for a commodity is found to be 0.4,then the commodity concerned is:
Q10 | Cross elasticity of demand in the case of substitutes:
Q11 | If a small change in price leads to infinitely large change in quantitydemanded, then the demand is:
Q12 | Net addition to total utility when one more unit is consumed is:
Q13 | Most important determinant of demand is :
Q14 | Which of the following is the reason for law of demand:
Q15 | Net addition to total cost is called:
Q16 | The market equilibrium for a commodity is determined by :
Q17 | When there are only few sellers of the commodity, the market is called:
Q18 | If the supply curve of the commodity is having a positive slope, a rise inthe price of the commodity, results in:
Q19 | From the position of stable equilibrium, the market supply of a commoditydecreases, while the market demand remains unchanged, then:
Q20 | Elasticity of supply for a positively sloped straight line supply curve thatintersects the price axis is:
Q21 | In which of the following market, advertisement is absent:
Q22 | -------------- cost can never become zero.
Q23 | If a positively sloped linear supply curve crosses the quantity axis, theelasticity of supply is:
Q24 | If a positively sloped linear supply curve passes through the origin, theelasticity of supply is
Q25 | Average cost is the sum of AVC and