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

Question # 1

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 # 2

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 # 3

Market Price of Perishable

Commodities A
Utility B
Consumer C
None of these D

Question # 4

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 # 5

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 # 6

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 # 7

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 # 8

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 # 9

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 # 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

A decrease in demand causes the equilibrium price to

rise A
fall B
remain constant C
indeterminate D

Question # 12

Demands and supply curves cross at

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

Question # 13

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 # 14

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 # 15

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 # 16

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 # 17

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 # 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

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 # 20

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

Sr.#	Question	Answer
1	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
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	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
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	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
6	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
7	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
8	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
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	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

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