Question # 1

Elasticity of demand for durable goods is

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More elastic

Less elastic

Infinte

Zero

When price of a commodity decreases but its demand does not change, this situation is called

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Constant demand

Fall of demand

Rise of demand

Extension of demand

Second name of unitary method is

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Method of total satisfication

total expenditure method

total revenue method

Both 2nd and 3rd

Finance minister in order to increase the public revenue, imposes tax on the commodities whose demand is less elastic

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At low rate

At high rate

Some times decreases the tax rate and some times increases the tax rate

Does not change tax rate

Elasticity of demand for luxuries is

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Equal to unity

More than unity

Less than unity

Zero

Which combination of the following is of joint demand

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Tea and coffee

Petrol and car

Meat and grocery

Inkpot and book

One of the following is not substitute good:

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Mobile and charger

Petrol and CNG

Burger and Shawarma

Both b & c

If there is big change in Price and demand, it is called

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Arc elasticity

Point elasticity

Income elasticity

Cross elasticity

When price decreases, supply

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Extends

Contracts

Becomes zero

Remains fixed

If demand decreases by 5% due to 10% increase in Price, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

Demand for the commodities having different uses

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Less elastic

More elastic

Perfectly inelastic

Infinitely elastic

Supply curve moves from left to right upward, this tendency is called

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Negative

Positive

Horizontal

Vertical

A big change in demand and price is called:

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PointElasticity of demand

ArcElasticity of demand

CrossElasticity of demand

PriceElasticity of demand

Relationship between price of a commodity and demand for it exists

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Positive

Inverse

Indirect

None of these

When there is a very small change in demand and price of a commodity, it is called

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Point elasticity

Arc elasticity

Cross elasticity

Income elasticity

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Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers

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