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

Question # 1

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 # 2

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 # 3

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 # 4

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 # 5

Markets where firms supply goods and services demanded by households are

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

Question # 6

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 # 7

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 # 8

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 # 9

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

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

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 # 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

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 # 14

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 # 15

Demands and supply curves cross at

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

Question # 16

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 # 17

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 # 18

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 # 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

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

Sr.#	Question	Answer
1	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
2	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.	A. Less than unity B. Greater than unity C. Equal to unity D. Equal to zero
3	A decrease in demand causes the equilibrium price to	A. rise B. fall C. remain constant D. indeterminate
4	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
5	One of the following is not an assumption of law of supply.	A. Political system should not changed B. Cost of production should not changed C. Production technique should not changed D. Cost of raw material should not changed
6	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
7	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
8	When demand is perfectly elastic, an increase in supply will result in	A. decrease in quantity sold B. increase in quantity sold C. fall in price D. b and c above
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	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

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Economics Ics Part 1 English Medium Chapter 6 Online Test

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

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

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

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.

Markets where firms supply goods and services demanded by households are

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

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

Market equilibrium means a situation where

If price is set above equilibrium level, there will be

An increases in the price of mutton provides information which

Equilibrium

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

Perfectly inelastic supply curve is:

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

Demands and supply curves cross at

Market equilibrium means

Which one will be termed as supply of a product.

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

In case of a fall in supply.

Demand and supply forces determine market price

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