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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
Question # 1
If demand for commodity X changes due to the change in price of commodity, it is called
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Cross elasticity
Price elasticity
Income elasticity
Arc elasticity
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Question # 2
If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is:
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Equal to zero
Equal to one
Smaller than one
Greater than one
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Question # 3
The term demand in economics means:
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Desire
Purchasing
Need
Both (a) and (b)
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Question # 4
If elasticity of supply is less than 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 # 5
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 # 6
Relationship between price and quantity demanded is called
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Demand schedule
Demand curve
Law of demand
Assumptions of law of demand
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Question # 7
If the percentage change in supply is more 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
Infinite
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Question # 8
Due to fall in demand, curve shifts to
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Right
Left
Both sides
None of these
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Question # 9
If there is slight change in price and demand, it is called
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Arc elasticity
Point elasticity
Income elasticity
Cross elasticity
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Question # 10
Movement on the same demand curve is called:
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Increase is demand
Rise and fall in demand
Decrease in demand
Expansions and contraction in demand
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Question # 11
Unity method to measure elasticity of supply is presented by
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Adam Smith
Robbins
Marshall
Faruson
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Question # 12
Income elasticity of demand is concerned with
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Income and consumption of wealth
Income and demand for good
Price and income of the consumer
Price and demand for good
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Question # 13
If demand decreases by 15% due to 10% increase in Price, then elasticity of demand is
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Equal to unity
More than unity
Less than unity
Zero
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Question # 14
By increasing the cost of production, the supply
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Extends
contracts
Falls
Rises
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Question # 15
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 # 16
When price decreases, supply
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Extends
Contracts
Becomes zero
Remains fixed
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