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

Question # 1

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 # 2

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 # 3

A decrease in demand causes the equilibrium price to

rise A
fall B
remain constant C
indeterminate D

Question # 4

Market Price of Perishable

Commodities A
Utility B
Consumer C
None of these D

Question # 5

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 # 6

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 # 7

Demands and supply curves cross at

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

Question # 8

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 # 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

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 # 11

Markets where firms supply goods and services demanded by households are

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

Question # 12

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 # 13

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 # 14

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 # 15

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 # 16

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 # 17

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 # 18

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 # 19

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 # 20

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

Sr.#	Question	Answer
1	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
2	Market Price of Perishable	A. Commodities B. Utility C. Consumer D. None of these
3	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
4	Extension of supply will take place as a consequence of:	A. Change in price B. Change in population C. Change in technology D. Change in money supply
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	Demands and supply curves cross at	A. always at 60 degree B. at 90 degree C. at equal angle D. at any angle
7	A decrease in demand causes the equilibrium price to	A. rise B. fall C. remain constant D. indeterminate
8	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
9	Markets where firms supply goods and services demanded by households are	A. factor market B. product market C. open markets D. resource markets
10	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

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