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

Question # 1

A decrease in demand causes the equilibrium price to

rise A
fall B
remain constant C
indeterminate D

Question # 2

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 # 3

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 # 4

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 # 5

In case of a fall in supply.

Quantity supplied falls at the same price. A
Quantity supplied rises at the same price. B
Quantity supplied remain at the lower price. C
None of the three D

Question # 6

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 # 7

A producers has one thousand tons of rice to be offered for sale at a certain price in future, it will be called.

Supply of output A
Production B
Buffer stock C
Stock D

Question # 8

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 # 9

A rise in supply and demand in equal proportion will result in

increase in equilibrium price and decrease in equilibrium quantity A
decreases in equilibrium price and increases in equilibrium quantity B
no change in equilibrium price and increases in equilibrium quantity C
increases in equilibrium price and no change in equilibrium quantity D

Question # 10

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 # 11

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 # 12

A fall fall in supply will take place due to a:

Business collusion A
Bumper crop B
Fall in custom duty C
Fall in income D

Question # 13

With an increase in cost of production, price of the product rises while supply of the product will.

Fall A
Rise B
Remain unchanged C
Non of the three D

Question # 14

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

Question # 15

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 # 16

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 # 17

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

supply and demand both increase equally A
supply and demand both decrease equally B
supply decreases and demand increases C
supply increases and demand decreases D

Question # 18

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 # 19

Price of a product is determined in a free market

by demand for the product A
by supply of the product B
by both demand and supply C
by the government D

Question # 20

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

Sr.#	Question	Answer
1	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
2	When price is fixed below equilibrium level, there will be	A. surplus commodity in the market B. shortage of commodity in the market C. supply curve will shift D. demand curve will shift
3	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
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	A change in price brings in quantity supplied. it will be.	A. Rise in supply B. Contraction of supply C. Fall in supply D. Extension of supply
6	Market equilibrium means	A. number of buyers and sellers are equal B. demand and supply of commodity are equal C. no price is changing D. prices rise very slowly
7	A decrease in demand causes the equilibrium price to	A. rise B. fall C. remain constant D. indeterminate
8	If equilibrium price rises but equilibrium quantity is unchanged, the cause is	A. supply and demand both increase equally B. supply and demand decrease equally C. supply curve is vertical and demand increases D. supply increases and demand is same
9	Perfectly inelastic supply curve is:	A. Parallel to vertical axis B. Parallel to horizontal axis C. Rises upward to the right D. Falls downward to the right
10	With an increase in cost of production, price of the product rises while supply of the product will.	A. Fall B. Rise C. Remain unchanged D. Non of the three

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Economics Ics Part 1 English Medium Chapter 6 Online Test

A decrease in demand causes the equilibrium price to

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

Market equilibrium means a situation where

Perfectly inelastic supply curve is:

In case of a fall in supply.

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

A producers has one thousand tons of rice to be offered for sale at a certain price in future, it will be called.

When price is fixed below equilibrium level, there will be

A rise in supply and demand in equal proportion will result in

An increases in the price of mutton provides information which

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

A fall fall in supply will take place due to a:

With an increase in cost of production, price of the product rises while supply of the product will.

Market equilibrium means

Which one will be termed as supply of a product.

Demand and supply forces determine market price

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

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.

Price of a product is determined in a free market

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

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