| 1 |
If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is: |
- A. Equal to zero
- B. Equal to one
- C. Smaller than one
- D. Greater than one
|
| 2 |
Usually market price is ____________ normal price |
- A. Equal to
- B. Less than
- C. More than
- D. None of these
|
| 3 |
Which one is not condition of perfect competition |
- A. Homogeneity of good
- B. Difference in price of good
- C. Large number of buyers and sellers
- D. Perfect knowledge of market
|
| 4 |
Relationship between price and quantity demanded is called |
- A. Demand schedule
- B. Demand curve
- C. Law of demand
- D. Assumptions of law of demand
|
| 5 |
Supply of durable goods is |
- A. Elastic
- B. Perfectly elastic
- C. Perfectly inelastic
- D. Less elastic
|
| 6 |
Reserve price of a commodity is that price |
- A. Which is more than the cost of production of the seller
- B. At which the seller sells his commodity tn the market
- C. Which is equal to the cost of production of the seller
- D. Below which the seller is not ready to sell his commodity
|
| 7 |
If demand curve is parallel to x-axis, then elasticity of demand is |
- A. Infinite
- B. Zero
- C. Equal to unity
- D. More than unity
|
| 8 |
If supply does not change, then due to fall of demand |
- A. Equilibrium price decreases
- B. Equilibrium price increases
- C. Equilibrium price does not change
- D. Equilibrium quantity increases
|
| 9 |
Supply means |
- A. total money of a specific producer
- B. Number of buyers
- C. quantity of goods offered for sale at different prices
- D. purchasing power of quantity supplied
|
| 10 |
Finance minister in order to increase the public revenue imposes the tax on the commodities whose demand is more elastic |
- A. At low rate
- B. At high rate
- C. Some times decreases the rate and some times increases
- D. Does not change Tax rate
|
