Question # 1

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

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At low rate

At high rate

Some times decreases the rate and some times increases

Does not change Tax rate

Supply of perishable goods is

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More elastic

less elastic

Perfectly inelastic

infinite elasticity of supply

Demand for the commodities having different uses

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Less elastic

More elastic

Perfectly inelastic

Infinitely elastic

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

Price and demand has a relationship:

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Negative

Positive

Functional

Both a & c

When demand and supply rise equally then equilibrium price

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isles

is more

Remains the source

Zero

According to law of demand, curve moves from left to right downward. This type of tendency is called

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Positive tendency

Negative tendency

Extension and contraction of demand

Rise and fall of demand

The goods on which law of demand does not apply, are called

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Services

Goods and services

Giffin goods

Capital goods

With an increase in the price of any good its substitutes will have

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a fall in its price

an increase in its prices

an increase in its demand

a decrease in its price

Cause of movement along the supply curve is

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Change in price

Other factors

Change in tax

Change in income

If quantity demand changes due to the change in income, it is called:

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Point Elasticity of demand

Arc Elasticity of demand

Income Elasticity of demand

Price Elasticity of demand

The term demand in economics means:

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Desire

Purchasing

Need

Both (a) and (b)

Equilibrium means

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the condition that is not possible

an unstable condition

a condition that can change

stable position

Elasticity of demand for the commodities which have substitutes, is

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More elastic

Less elastic

Infinite

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

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

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