Question # 1

Market equilibrium is determined when

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Demand = supply

Demand > supply

Demand < supply

Demand = zero

The supply curve of Fish is

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More elastic

Less elastic

Inelastic

Infinite elastic

The term demand in economics means:

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Desire

Purchasing

Need

Both (a) and (b)

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

The duty of a market is not to

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make exchange of goods

contact buyers and sellers

determine price

give maximum output

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

If demand for a commodity changes due to change in price of its substitute, it is called

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Price elasticity

Point elasticity

Cross elasticity

Arc elasticity

In case of rise in demand, demand curve shifts:

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Right side

Downward

Upward

(a) and (c)

Exceptions, or limitations of law of demand have been stated by

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Professor Marshall

Professor Adam Smith

Professor Benham

Professor Robbins

If demand does not change, despite a fall in price, is called

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Fall of demand

Rise of demand

Contraction of demand

Extension of demand

The price at which quantity demanded and supplied are equal

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Equilibrium price

Reserve price

Fixed price

Variable price

Relationship between price of a commodity and demand for it exists

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Positive

Inverse

Indirect

None of these

If supply is fixed then due to fall of demand

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Equilibrium price decreases

Equilibrium quantity increases

Equilibrium price increases

Equilibrium price does not change

Elasticity of supply if perishable goods is

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Equal to unity

More than unity

Less than unity

Zero

Measurement of arc elasticity of demand was present:

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Keynes

Marshall

Adam smith

R.G.D Allen

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

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

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