11th class Economics chapter 6 online mcq test with answers for ICS part 1 Economics chapter 6 (Market Equilibrium)

Question # 1

When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be.

Less than unity A
Greater than unity B
Equal to unity C
Equal to zero D

Question # 2

Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is

a shortage A
a surplus B
excess supply C
loss D

Question # 3

Perfectly inelastic supply curve is:

Parallel to vertical axis A
Parallel to horizontal axis B
Rises upward to the right C
Falls downward to the right D

Question # 4

Which one will be termed as supply of a product.

One tone potato in cold storage A
One ton rice offered for sale in market B
One ton rice brought for sale in market at a certain price. C
None of the three D

Question # 5

If we know that quantities bought and sold are equal, we can conclude that

quantities demanded and supplied are also equal A
the market is in equilibrium B
there will be no tendency for a price change C
all of the above D

Question # 6

Markets where firms supply goods and services demanded by households are

factor market A
product market B
open markets C
resource markets D

Question # 7

Market equilibrium means a situation where

Q_s= Q_d A
Q_s= Q_p B
Q_d= Q_p C
Q_q= Q_p D

Question # 8

The price and sales of sugar both increase. What could be the cause of this?

a decrease in the income of the consumers. A
a decrease in the tax on sugar B
An increase in the wages of workers in the sugar industry C
An increase in the price of sugar substitutes D

Question # 9

When there is big change in quantity supplied resulting from a minor change inits price,its elasticity of supply will be.

Equal to unity A
Less than unity B
Equal to zero C
Greater than unity D

Question # 10

If equilibrium price rises but equilibrium quantity is unchanged, the cause is

supply and demand both increase equally A
supply and demand decrease equally B
supply curve is vertical and demand increases C
supply increases and demand is same D

Question # 11

When price is fixed below equilibrium level, there will be

surplus commodity in the market A
shortage of commodity in the market B
supply curve will shift C
demand curve will shift D

Question # 12

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then

price will fall A
price remains same B
price will rise C
quantity rises D

Question # 13

Demand and supply forces determine market price

only in perfect competition A
only in monopoly market B
in both markets C
none of the above D

Question # 14

An increases in the price of mutton provides information which

tells consumers to buy more mutton A
tells consumers to buy more chicken B
tells producers to produce more mutton C
b and c of above D

Question # 15

A change in price brings in quantity supplied. it will be.

Rise in supply A
Contraction of supply B
Fall in supply C
Extension of supply D

Question # 16

Equilibrium

is a state that can never be achieved in economics A
is an important idea for predicting economics changes B
is a stable condition C
is an unstable condition D

Question # 17

Extension of supply will take place as a consequence of:

Change in price A
Change in population B
Change in technology C
Change in money supply D

Question # 18

One of the following is not an assumption of law of supply.

Political system should not changed A
Cost of production should not changed B
Production technique should not changed C
Cost of raw material should not changed D

Question # 19

When the supply curve of a product is parallel to the vertical axis, it would mean that;

Different quantities of a product are supplied at the same price. A
Different quantities of a product are supplied at different price. B
Same quantities of a product are supplied at different price. C
None of three D

Question # 20

Market equilibrium means

number of buyers and sellers are equal A
demand and supply of commodity are equal B
no price is changing C
prices rise very slowly D

Sr.#	Question	Answer
1	A fall fall in supply will take place due to a:	A. Business collusion B. Bumper crop C. Fall in custom duty D. Fall in income
2	Markets where firms supply goods and services demanded by households are	A. factor market B. product market C. open markets D. resource markets
3	Equilibrium	A. is a state that can never be achieved in economics B. is an important idea for predicting economics changes C. is a stable condition D. is an unstable condition
4	Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is	A. a shortage B. a surplus C. excess supply D. loss
5	When there is big change in quantity supplied resulting from a minor change inits price,its elasticity of supply will be.	A. Equal to unity B. Less than unity C. Equal to zero D. Greater than unity
6	Price of a product is determined in a free market	A. by demand for the product B. by supply of the product C. by both demand and supply D. by the government
7	Demand and supply forces determine market price	A. only in perfect competition B. only in monopoly market C. in both markets D. none of the above
8	Which one will be termed as supply of a product.	A. One tone potato in cold storage B. One ton rice offered for sale in market C. One ton rice brought for sale in market at a certain price. D. None of the three
9	In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then	A. price will fall B. price remains same C. price will rise D. quantity rises
10	In case of a fall in supply.	A. Quantity supplied falls at the same price. B. Quantity supplied rises at the same price. C. Quantity supplied remain at the lower price. D. None of the three

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When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be.

Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is

Perfectly inelastic supply curve is:

Which one will be termed as supply of a product.

If we know that quantities bought and sold are equal, we can conclude that

Markets where firms supply goods and services demanded by households are

Market equilibrium means a situation where

The price and sales of sugar both increase. What could be the cause of this?

When there is big change in quantity supplied resulting from a minor change inits price,its elasticity of supply will be.

If equilibrium price rises but equilibrium quantity is unchanged, the cause is

When price is fixed below equilibrium level, there will be

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then

Demand and supply forces determine market price

An increases in the price of mutton provides information which

A change in price brings in quantity supplied. it will be.

Equilibrium

Extension of supply will take place as a consequence of:

One of the following is not an assumption of law of supply.

When the supply curve of a product is parallel to the vertical axis, it would mean that;

Market equilibrium means

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