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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
Question # 1
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 # 2
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 # 3
Id demand changes by less than 10% due to 10% change in price, then elasticity of demand is called
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Equal to unity
More than unity
Less than unity
Infinite
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Question # 4
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 # 5
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 # 6
If price of a commodity remains constant but its supply decreases or price increases but supply remains constant, it is called
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Rise of supply
Extension of supply
Fall of supply
Contraction of supply
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Question # 7
If supply does not change, then due to rise of demand
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Equilibrium price increases
Equilibrium price decreases
Equilibrium price does not change
Equilibrium quantity decreases
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Question # 8
If the ratio of change in demand is equal to the ratio of change in price, elasticity of demand will be
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More than unity
Less than unity
Equal to unity
Infinite
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Question # 9
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 # 10
If the total expenditure of the consumer does not change due to increase or decrease (change) 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 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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Question # 12
Non elastic demand curve is
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positive
negative
vertical
horizontal
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Question # 13
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 # 14
If demand decreases by 10% 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 # 15
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 # 16
Elasticity of demand for durable goods is
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More elastic
Less elastic
Infinte
Zero
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