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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
Question # 1
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
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Question # 2
If the total expenditure of the consumer increases due to increase 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 # 3
When supply curve shifts rightward or down it is called
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Rise of supply
Fall of supply
Extension of supply
Contraction of supply
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Question # 4
Elasticity of demand for the commodities which have substitutes, is
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More elastic
Less elastic
Infinite
Zero
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Question # 5
When demand and supply rise equally then equilibrium price
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isles
is more
Remains the source
Zero
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Question # 6
Which one of the following is not included in the assumptions of law of supply
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taste of consumer
cost of production
Methods of production
price of raw material
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Question # 7
Which one is not condition of perfect competition
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Homogeneity of good
Difference in price of good
Large number of buyers and sellers
Perfect knowledge of market
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Question # 8
If same amount of good is supplied at higher price, it is called
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Expansion of supply
Contraction of supply
Fall in supply
Rise in supply
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Question # 9
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 # 10
Slope of demand curve of exceptions of law of demand is
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Negative
Positive
Zero
Fixed
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Question # 11
If demand rises more proportionately than that of supply, then
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Equilibrium price increases
Equilibrium price decreases
Equilibrium price does not change
Equilibrium quantity decreases
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Question # 12
Elasticity of demand for substitute and jointly demanded goods is called
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Income elasticity
Arc elasticity
Cross elasticity
Point elasticity
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Question # 13
When demand curve shifts leftward (or downward), it is called
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Rise of demand
Fall of demand
Extension of demand
Contraction of demand
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Question # 14
If demand and supply both rise in the same proportion, then
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Equilibrium price decreases
Equilibrium price does not change
Equilibrium price increases
Equilibrium quantity decreases
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Question # 15
Slope of demand curve is
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Negative
Positive
zero
fixed
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Question # 16
If supply increase due to increase in price, it is called
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Extension of supply
Contraction of supply
Rise of supply
Fall of supply
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