| 1 |
The elasticity of demand for a product is less than unity. Therefore, with a fall in its price, total expenditure of consumer will. |
- A. Fall
- B. Rise
- C. Remain the same
- D. Fluctuate
|
| 2 |
The price of a product double due to which its quantity demand falls to one half. The elasticity of demand for product will be: |
- A. Equal to unity
- B. Lass than unity
- C. Greater than unity
- D. Equal to zero
|
| 3 |
If price changes by one % and supply changes by 2% then supply is |
- A. elastic
- B. inelastic
- C. indeterminate
- D. static
|
| 4 |
What best explains a shift in market supply curve to the right? |
- A. an advertising campaign is successful in promoting the good
- B. a new technique makes it cheaper to produce the good
- C. the government introduces a tax on the good
- D. the price of raw materials increases
|
| 5 |
Long period supply curve is |
- A. relatively flatter
- B. relatively steeper
- C. more elastic
- D. a and c of above
|
| 6 |
Which one is increasing function of price |
- A. demand
- B. utility
- C. supply
- D. consumption
|
| 7 |
Who present the Arc Elasticity formula for the measurement of elasticity of demand. |
- A. R.G.D Allen
- B. Pareto
- C. J.R. Hicks
- D. Robbins
|
| 8 |
The quantities of a commodity offered for sale at different prices during a given period of time are called |
- A. Supply
- B. Demand
- C. Stock
- D. None of these
|
| 9 |
With a fall in the price of a Giffen good or inferior good its quantity demand will. |
- A. Fall
- B. Rise
- C. Remain unchanged
- D. None of three
|
| 10 |
In case of perfectly elastic demand curve, the demand curve will be parallel to the. |
- A. Horizontal Axis
- B. Vertical Axis
- C. None of the above
|