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

Question # 1

Demands and supply curves cross at

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

Question # 2

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 # 3

Markets where firms supply goods and services demanded by households are

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

Question # 4

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 # 5

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 # 6

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 # 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

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

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 # 10

Market Price of Perishable

Commodities A
Utility B
Consumer C
None of these D

Question # 11

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 # 12

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 # 13

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 # 14

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 # 15

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 # 16

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 # 17

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 # 18

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 # 19

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 # 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	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
2	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
3	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
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	Which one will be termed as supply of a product.	A. One tone potato in cold storage B. One ton rice offered for sale in market C. One ton rice brought for sale in market at a certain price. D. None of the three
6	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
7	A rise in supply and demand in equal proportion will result in	A. increase in equilibrium price and decrease in equilibrium quantity B. decreases in equilibrium price and increases in equilibrium quantity C. no change in equilibrium price and increases in equilibrium quantity D. increases in equilibrium price and no change in equilibrium quantity
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	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
10	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

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Economics Ics Part 1 English Medium Chapter 6 Online Test

Demands and supply curves cross at

If price is set above equilibrium level, there will be

Markets where firms supply goods and services demanded by households are

Price of a product is determined in a free market

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

When price is fixed below equilibrium level, there will be

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

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

Which one will be termed as supply of a product.

Market Price of Perishable

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

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.

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

A rise in supply and demand in equal proportion will result in

An increases in the price of mutton provides information which

Perfectly inelastic supply curve is:

Equilibrium

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

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

Market equilibrium means a situation where

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