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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
Question # 1
Unitary method is also known as:
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Total revenue
Total satisfaction
Total utility
Total expenditure
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Question # 2
If demand curve is parallel to y-axis, then elasticity of demand is
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Equal to unity
More than unity
Less than unity
Zero
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Question # 3
When the price of a commodity increases but its demand does not change, this situation is called
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Constant demand
Fall of demand
Rise of demand
Contraction of demand
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Question # 4
Some inferior goods having expensive substitutes are known as:
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Economic goods
Giffen goods
Non-economic goods
Free goods
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Question # 5
If supply of a commodity changes by less than 10% due to a 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 # 6
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 # 7
The cause of rise and fall of demand is
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income
price
population
Both 1st and 3rd
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Question # 8
Stock means the quantity of a commodity
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Which is offered for sale in the market
Which is sold in the market
Total production is called stock
Which the seller keeps in his possession without selling
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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
If total expenditure of the consumer increases 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
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Question # 11
If the demand for a commodity is more elastic, then an entrepreneur in order to increase his profit
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Will increase its price
Will decrease its price
Will not change its price
None of these
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Question # 12
Market equilibrium is attained when there exists in the market
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Perfect competition
Imperfect competition
Monopoly
Large quantity of commodity comes in the market
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Question # 13
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
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Question # 14
What is meant by demand for a commodity in economics
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To desire for a commodity
To have power to buy
To have power to buy a commodity with desire
Quantity of a commodity
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Question # 15
Who did present unity method to measure elasticity of demand
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Adam Smith
Marshall
Robbins
keynes
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Question # 16
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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