Question # 1

Kinds of supply according to period of time are

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Two

Three

Four

Five

Finance minister in order to increase the public revenue, imposes tax on the commodities whose demand is less elastic

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At low rate

At high rate

Some times decreases the tax rate and some times increases the tax rate

Does not change tax rate

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

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

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

According to law of supply, supply curve moves from left to right upward, this tendency is called

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Positive

Negative

Horizontal

Vertical

According to law of demand, curve moves from left to right downward. This type of tendency is called

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Positive tendency

Negative tendency

Extension and contraction of demand

Rise and fall of demand

Desire + Purchasing power is equal to:

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Demand

Supply

Income

Utility

Demand for luxuries in

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Les elastic

More elastic

Perfectly elastic

Perfectly inelastic

Another name of unitary method is

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Total satisfiaction method

Total expenditure method

Total revenue method

Both 2nd and 3rd

Which combination of the following is of joint demand

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Tea and coffee

Petrol and car

Meat and grocery

Inkpot and book

Intersection of demand and supply curve is called

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Equilibrium of firm

Equilibrium of demand

Equilibrium of supply

Equilibrium point

The demand curve slopes

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upwards

Horizontal

vertical

downward to the right

Finance minister imposes tax on the goods having more elastic demand

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At low rate

At high rate

At the same rate

At zero rate

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

If elasticity of supply is equal to 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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Principles of Economics Icom Part 1 English Medium Chapter 3 Online Test MCQs With Answers

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