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

Question # 1

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 # 2

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 # 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

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 # 5

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 # 6

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 # 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 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 # 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

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 # 11

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 # 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

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 # 14

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 # 15

Markets where firms supply goods and services demanded by households are

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

Question # 16

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 # 17

Market Price of Perishable

Commodities A
Utility B
Consumer C
None of these D

Question # 18

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 # 19

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 # 20

If price is set above 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

Sr.#	Question	Answer
1	A decrease in demand causes the equilibrium price to	A. rise B. fall C. remain constant D. indeterminate
2	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
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	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
5	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
6	When the supply curve of a product is parallel to the vertical axis, it would mean that;	A. Different quantities of a product are supplied at the same price. B. Different quantities of a product are supplied at different price. C. Same quantities of a product are supplied at different price. D. None of three
7	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
8	Market Price of Perishable	A. Commodities B. Utility C. Consumer D. None of these
9	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
10	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

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Economics Ics Part 1 English Medium Chapter 6 Online Test

Price of a product is determined in a free market

Which one will be termed as supply of a product.

Perfectly inelastic supply curve is:

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

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

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

Equilibrium

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

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

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

Market equilibrium means

When price is fixed below equilibrium level, there will be

An increases in the price of mutton provides information which

In case of a fall in supply.

Markets where firms supply goods and services demanded by households are

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

Market Price of Perishable

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

Market equilibrium means a situation where

If price is set above equilibrium level, there will be

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