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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers
Question # 1
If same amount of good is supplied at higher price, it is called
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Expansion of supply
Contraction of supply
Fall in supply
Rise in supply
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Question # 2
Second name of unitary method is
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Method of total satisfication
total expenditure method
total revenue method
Both 2nd and 3rd
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Question # 3
By increasing the cost of production, the supply
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Extends
contracts
Falls
Rises
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Question # 4
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 # 5
What functional relationship is present between demand and price
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positive
inverse
increasing
none of these
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Question # 6
If total expenditure of the consumer decreases due to increase 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 # 7
If 50% change in demand in response of 30% change in price then:
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Elasticity of demand = 1
Elasticity of demand < 1
Elasticity of demand > 1
Elasticity of demand = 0
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Question # 8
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 # 9
If supply goes on increasing due to a slight increase in price, then elasticity of supply is called
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Zero
Infinite
Equal to unity
More than unity
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Question # 10
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 # 11
Shape of market supply curve is
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Horizontal or parallel to ox curve
Vertical or parallel to oy curve
Positively sloping
Negatively sloping
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Question # 12
Desire + Purchasing power is equal to:
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Demand
Supply
Income
Utility
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Question # 13
If price of a commodity constant but its supply increases or price decreases but supply remains constant, it is called
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Rise of supply
Fall of supply
Extension of supply
Contraction of supply
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Question # 14
If demand falls more proportionately then that of supply then
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Equilibrium price increases
Equilibrium price decreases
Equilibrium price does not change
Equilibrium quantity increases
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Question # 15
If the total expenditure of the consumer increases due to increase 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 # 16
The goods on which law of demand does not apply, are called
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Services
Goods and services
Giffin goods
Capital goods
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