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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
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
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Question # 2
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
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Question # 3
Demand for a commodity means
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Desire to purchase
Power to purchase
Price of commodity
All the three
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Question # 4
If two goods are complimentary, cross Elasticity of demand will be:
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Zero
Infinite
Positive
Negative
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Question # 5
When demand increases due to change in other factors it is known as:
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Contraction in demand
Expansion and contraction in demand
Expansion in demand
Rise in demand
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Question # 6
Quickly destroyable goods are called
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Superior goods
Inferior goods
Perishable goods
Giffen godds
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Question # 7
The price at which quantity demanded and supplied are equal
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Equilibrium price
Reserve price
Fixed price
Variable price
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Question # 8
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 # 9
In case of perfectly elastic supply or infinite elasticity of supply, supply curve is
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Horizontal (parallel to x-axis)
Vertical (parallel to y-axis)
Positive sloped
Negative sloped
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Question # 10
In case of rise in demand, demand curve shifts:
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Right side
Downward
Upward
(a) and (c)
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Question # 11
Supply of goods depends upon
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Price
Income
Price and income
Utility
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Question # 12
Demand for necessities of life is
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Les elastic
More elastic
Perfectly elastic
Perfectly inelastic
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Question # 13
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 # 14
If supply of a commodity changes by 10% due to 10% change in its price, then elasticity of supply will be
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Equal to unity
More than unity
Less than unity
Zero
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Question # 15
Quantity of a commodity which the consumers are ready to purchase at a particular price, is called
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Demand
Supply
Stock
Demand and supply
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Question # 16
Equilibrium means
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the condition that is not possible
an unstable condition
a condition that can change
stable position
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