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

Question # 1

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 # 2

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 # 3

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 # 4

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 # 5

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 # 6

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 # 7

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 # 8

A decrease in demand causes the equilibrium price to

rise A
fall B
remain constant C
indeterminate D

Question # 9

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 # 10

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 # 11

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 # 12

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 # 13

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 # 14

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 # 15

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 # 16

Demands and supply curves cross at

always at 60 degree A
at 90 degree B
at equal angle C
at any angle D

Question # 17

When demand is perfectly elastic, an increase in supply will result in

decrease in quantity sold A
increase in quantity sold B
fall in price C
b and c above D

Question # 18

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 # 19

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 # 20

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

Sr.#	Question	Answer
1	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
2	A producers has one thousand tons of rice to be offered for sale at a certain price in future, it will be called.	A. Supply of output B. Production C. Buffer stock D. Stock
3	An increases in the price of mutton provides information which	A. tells consumers to buy more mutton B. tells consumers to buy more chicken C. tells producers to produce more mutton D. b and c of above
4	If equilibrium price rises but equilibrium quantity remains unchanged, the cause is	A. supply and demand both increase equally B. supply and demand both decrease equally C. supply decreases and demand increases D. supply increases and demand decreases
5	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
6	Markets where firms supply goods and services demanded by households are	A. factor market B. product market C. open markets D. resource markets
7	Demands and supply curves cross at	A. always at 60 degree B. at 90 degree C. at equal angle D. at any angle
8	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
9	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
10	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

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Economics Ics Part 1 English Medium Chapter 6 Online Test

Market equilibrium means

Demand and supply forces determine market price

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.

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

Market equilibrium means a situation where

An increases in the price of mutton provides information which

Equilibrium

A decrease in demand causes the equilibrium price to

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;

Price of a product is determined in a free market

When price is fixed below equilibrium level, there will be

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

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

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

Demands and supply curves cross at

When demand is perfectly elastic, an increase in supply will result in

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

In case of a fall in supply.

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

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