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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
Question # 1
Relationship between price of a commodity and demand for it exists
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Positive
Inverse
Indirect
None of these
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Question # 2
If due to a very slight decrease in price, demand goes on increasing, elasticity of demand will be
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More than unity
Less than unity
Infinite
Zero
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Question # 3
If the total expenditure of the consumer decreases due to decrease in price, then nature of elasticity of demand will be
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Equal to unity
Less than unity
More than unity
Elasticity of demand = zero
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Question # 4
If percentage change in supply is less than the percentage change in price, then elasticity of supply is called
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Equal to unity
Less than unity
More than unity
Zero
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Question # 5
When demand curve shifts rightward (or upward), it is called
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Rise of demand
Fall of demand
Extension of demand
Contraction of demand
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Question # 6
Quantity supplied of a commodity extends because
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Population changes
Change occurs in assumtions of law of supply
Income of the entrepreneur increases
Price of the commodity increases
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Question # 7
If supply curve is vertical (parallel to y-axis), then elasticity of supply is
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Zero
Infinite
Equal to unity
More than unity
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Question # 8
When supply curve shifts leftwards or up, it is called
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Rise of supply
Fall of supply
Extension of supply
Contraction of supply
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Question # 9
According to the law of supply, there is relation in price and supply
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Inverse
Increasing
Negative
indirect
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Question # 10
Supply curve moves from left to right upward, this tendency is called
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Negative
Positive
Horizontal
Vertical
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Question # 11
If elasticity of supply is equal to unity then extending supply curve downward, it passes through or crosses
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y-axis
x-axis
Point of origin
Becomes vertical
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Question # 12
In order to satisfy some wants, more than one commodities are needed. Demand for such commodities is called
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Joint demand
Composite demand
Derived demand
Direct demand
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Question # 13
One of the following is not substitute good:
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Mobile and charger
Petrol and CNG
Burger and Shawarma
Both b & c
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Question # 14
According to law of supply which factor changes the supply
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cost of producton
price
climatic conditions
level of income
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Question # 15
If quantity demanded for a commodity changes due to the change in income, it is called
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Price elasticity
Point elasticity
Cross elasticity
Income elasticity
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Question # 16
Some inferior goods having expensive substitutes are known as:
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Economic goods
Giffen goods
Non-economic goods
Free goods
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