Up To Date Supply And Demand MCQs ( Economics ) MCQs – Competitive Economics MCQs
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Latest Economics MCQs
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Latest Supply And Demand Mcqs ( Economics ) Mcqs
The most occurred mcqs of Supply And Demand Mcqs ( Economics ) in past papers. Past papers of Supply And Demand Mcqs ( Economics ) Mcqs. Past papers of Supply And Demand Mcqs ( Economics ) Mcqs . Mcqs are the necessary part of any competitive / job related exams. The Mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Supply And Demand Mcqs ( Economics ) Mcqs. The Important series of Supply And Demand Mcqs ( Economics ) Mcqs are given below:
A firm that makes profit in addition to normal profit is making ?
A. Accounting profit
B. Economic profit
C. Normal profit
D. supernormal profit
An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?
A. increases; increases
B. reduces; increases
C. reduces; reduces
D. increases; reduces
Marginal revenue is the ________ when output is __________?
A. change in average revenue, increased by one unit
B. Change in total revenue, increase by one unit
C. Change in average revenue, increased
D. change in total revenue increased
Firms are assumed to ________ costs and to ________ profits?
A. pay, make
B. incur, desire
C. charge earns
D. minimize, maximize
The extra utility from consuming one more unit of a good is called ?
A. Marginal utility
B. Surplus utility
C. Additional utility
D. Bonus utility
The opportunity cost of a student is____________?
A. A loan from the bank
B. Course fees and rent
C. What the student could have earned in the best job available by not studying
D. What the student will earn after graduation
If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?
A. decrease
B. not change
C. increase
D. shift
A measurement showing how quantity demanded varies with income is the ?
A. Cross-price elasticity of demand
B. Price elasticity of demand
C. budget elasticity of demand
D. income elasticity of demand
The price elasticity of demand measures ?
A. The responsiveness of quantity demanded to a change in price
B. a change in price
C. How far a demand curve shifts
D. a change in quantity demanded
Increased level consumption ?
A. shift aggregate demand to the right
B. shift aggregate supply to the left
C. shift aggregate supply to the right
D. shift aggregate demand to the left
Improved training of employees would ?
A. Shift aggregate supply to the right
B. Shift aggregate demand to the right
C. Shift aggregate supply to the left
D. shift aggregate demand to the left
Which of the following would increase aggregate demand ?
A. Increasing import spending
B. Increased saving
C. Increased taxation revenue
D. increased investment
Aggregate demand will increase if ?
A. investment falls
B. consumption falls
C. Exports fall
D. imports fall
The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now ?
A. 60 units
B. 320 units
C. 80 units
D. 120 units
An increase in productivity should ?
A. Lead to an expansion of supply
B. Lead to a contraction of supply
C. Lead to a shift in supply outwards (i.e more supplied at each and every price)
D. Lead to a higher equilibrium and lower equilibrium quantity
An increase in the costs of production will ?
A. Shift demand inwards
B. Shift demand outwards
C. Shift supply outwards so more is supplied at each and every price, all other things unchanged
D. Shift supply inwards
A supply curve that starts at the origin has ?
A. A price elasticity of supply less than one
B. A price elasticity of supply equal to one
C. A price elasticity of supply greater than one
D. A positive price elasticity of supply
If a 4% increase in price leads to a increase in the quantity supplied of 8% ?
A. Supply is price elastic
B. Price elasticity of demand is -2
C. Supply is income elastic
D. Price elasticity of supply is -2
For a normal good ?
A. The price elasticity of demand is positive the income elasticity of demand is negative
B. The price elasticity of demand is negative the income elasticity of demand is negative
C. The price elasticity of demand is negative the income elasticity of demand is positive
D. The price elasticity of demand is positive; the income elasticity of demand is positive
Introduction To Economics MCQs
if demand is price inelastic ?
A. An increase in price decrease revenue
B. An increase in price must raise profits
C. An increase in price increase revenue
D. A decrease in price reduces sales
The price elasticity of demand is a negative number this means ?
A. Demand is price inelastic
B. Demand is price elastic
C. The demand curve is downward sloping
D. An increase in income will reduce the quantity demanded
If the cross elasticity of demand is -2 ?
A. The products are substitutes and demand is cross price inelastic
B. The products are substitutes and demand is cross price elastic
C. The products are complements and demand is cross price elastic
D. The products are complements and demand is cross price inelastic
The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
A. The price elasticity of demand is -2
B. Income elasticity is + 0.5
C. The good is inferior
D. Income elasticity is + 2
If a product is an inferior good ?
A. Demand is inversely related to income
B. Demand is directly related to price
C. Demand in inversely related to price
D. Demand is inversely related to the price of substitutes
An increase in price all other things unchanged leads to ?
A. Shift demand inwards
B. Shift demand outwards
C. A contractions of demand
D. An extension of demand
An increase in income should ?
A. shift supply for an inferior product outward
B. shift demand for an inferior product inward
C. Shift demand for an inferior product outward
D. Shift supply for an inferior product inward
According to the law of diminishing utility ?
A. Increasing units of consumption increase the marginal utility
B. Utility is at a maximum with the first unit
C. Marginal product will fall as more units are consumed
D. Total utility will rise at a falling rate as more units are consumed
A fall in price ?
A. Will cause an outward shift of supply
B. Will cause an inward shift of demand
C. May be caused by a fall in demand
D. Leads to a higher level of production
When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as ?
A. price fixing
B. Quantity setting
C. price rationing
D. quantity adjustment.
If the cross-price elasticity of demand between two goods is negative, then the two goods are ?
A. unrelated goods
B. normal goods
C. Substitutes.
D. Complements
The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ?
A. elastic
B. unitarily elastic
C. perfectly elastic
D. inelastic.
The price of apples falls by 5% and quantity demanded increases by 6% This means that demand is ?
A. perfectly elastic
B. elastic
C. zero elastic
D. inelastic
A movement along the demand curve to the left may be caused by ?
A. a decrease in supply.
B. a rise in the price of inputs
C. a fall in the number of substitute goods
D. a rise in income
An increase in aggregate demand if aggregate supply is totally inelastic will ?
A. increase price but not output
B. increase output and price
C. increase output but not price
D. decrease output and price
When excess demand occurs in an unregulated market, there is a tendency for ?
A. quantity supplied to decrease
B. price to fall.
C. price to rise
D. quantity demanded to increase
Which of the following is consistent with the law of supply ?
A. As the price of calculators calls the supply of calculators increases, ceteris paribus.
B. As the price of calculators rise, the quantity supplied of calculators decreases, ceteris paribus.
C. As the price of calculators rise, the quantity supplied of calculators increases, ceteris paribus.
D. As the price of calculators rise, the supply of calculators increases ceteris paribus.
If the demand for coffee decreases as income decreases, coffee is ?
A. a complementary good
B. a normal good
C. an inferior good
D. a substitute good
When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?
A. inferior
B. substitutes
C. complements
D. nromal
The quantity demanded of Pepsi has decreased. The best explanation for this is that ?
A. Pepsi’s advertising is not as effective as in the past.
B. Pepsi consumers had an increase in income.
C. The price of Coca Cola has increased,
D. The price of Pepsi increased
The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?
A. have few complementary goods.
B. are normal goods
C. have few substitutes.
D. have many complementary goods.
If both marginal cost and marginal revenue increase, a firm ?
A. Should reduce output
B. Should increase output
C. will require further information on how to respond
D. Should not change output
A firm that breaks even after all economic costs are paid is earning ?
A. Accounting profit
B. Economic profit
C. Normal profit
D. Supernormal profit
If a firm wage costs increase this will cause __________ and __________?
A. marginal cost to increase, output to fall
B. opportunity cost to increase the firm will close
C. marginal revenue to increase output to fall
D. average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output
Profits are maximized when ?
A. revenue is maximized
B. costs are minimized
C. average cost is less than average revenue
D. marginal cost equals marginal revenue
The increase in total cost when one more unit is produced is known as ?
A. opportunity cost
B. marginal cost
C. limited cost
D. average cost
Adding up the quantities demanded of a good by different people facing the same price gives us the ?
A. Demand curve
B. Market demand curve
C. Supply curve
D. Market supply curve
Economics assumes that people consume goods and services to achieve ?
A. Prestige
B. Status
C. Utility
D. Self-esteem
The income effect of a price increase of a normal good is to ________ of that good and the substitution effect is to _________ of that good?
A. increase quantity demanded, increases quantity demanded
B. increase quantity demanded, reduce quantity demanded
C. reduce quantity demanded, reduce quantity demanded
D. reduce quantity demanded, increase quantity demanded
Inferior goods have _________ and luxury goods have _________?
A. negative income elasticity income elasticity greater than 1
B. Positive income elasticities, negative income elasticities
C. income elasticity greater than 1, negative income elasticities
D. None of the above
Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
A. normal, complements
B. substitutes inferior
C. substitutes complements
D. normal, inferior
If demand is __________ then price cuts will _________ spending?
A. elastic, decrease
B. elastic; increase
C. inelastic; increase
D. none of the above
Increased levels of spending on imports ?
A. shift aggregate supply to the left
B. shift aggregate supply to the right
C. shift aggregate demand to the right
D. shift aggregate demand to the left
Increase unemployment benefits and less incentive to work would ?
A. shift aggregate supply to the right
B. shift aggregate demand to the right
C. shift aggregate supply to the left
D. shift aggregate demand to the left
Which of the following would decease aggregate demand ?
A. increased taxation revenue
B. increasing export revenue
C. increase consumption
D. increased investment
An increase in aggregate demand will have most effect on prices if ?
A. Aggregate supply has a unitary price elasticity
B. Aggregate supply is price elastic
C. Aggregate supply is price inelastic
D. Aggregate demand is price inelastic
A shift in aggregate supply is likely to ?
A. Reduce the general price level and reduce national income
B. Increase the general price level and reduce national income
C. Reduce the general price level and increase national income
D. Increase the general price level and increase national income
An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?
A. -2
B. +0.5
C. +2
D. -0.5
Basics Of Economics MCQs
An increase in price all other things unchanged leads to ?
A. A shift in supply inwards
B. A shift in supply outwards
C. A contraction of supply
D. An extension of supply
A contraction in supply occurs when ?
A. The supply curve shifts inwards
B. Demand shifts outwards
C. The quantity supplied falls when the price falls
D. The supply curve shifts outwards
Supply is likely to be more price elastic ?
A. If there are very few producers
B. If factors of production are relatively immobile between industries
C. In the short run rather than the long run
D. If it is easy to expand output
Which best describes a supply curve ?
A. The quantity producers are willing and able to sell at each and every income all other things unchanged
B. The quantity producers are willing and able to sell at each and every price all other things unchanged
C. The quantity consumers would like to buy in an ideal world
D. The quantity producers are willing and able to sell at each and every point in time all other things unchanged
For an inferior good ?
A. The price elasticity of demand is negative: the income elasticity of demand is negative
B. The price elasticity of demand is negative the income elasticity of demand is positive
C. The price elasticity of demand is positive the income elasticity of demand is negative
D. The price elasticity of demand is positive the income elasticity of demand is positive
Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
A. 500 units
B. 550 units
C. 450 units
D. 490 units
The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?
A. 5500
B. 7000
C. 3000
D. 4500
If the price elasticity of demand is unit then a fall in price ?
A. Increase revenue
B. Leaves revenue unchanged
C. Reduces revenue
D. Reduces costs
Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?
A. The good is inferior
B. Demand is price inelastic
C. Income elasticity is -2
D. The product is normal
If a product is a vablen good ?
A. Demand is inversely related to price
B. Demand is inversely related to income
C. Demand is directly related to price
D. Demand is inversely related to the price of substitutes
An increase in the price of a complement for product A would ?
A. Shift supply for product A outwards
B. Shift demand for product A inwards
C. Shift demand for Product A outwards
D. Shift supply for product A inwards
If marginal utility is zero ?
A. An additional unit of consumption will increase total utility
B. An additional unit of consumption will decrease total utility
C. Total utility is zero
D. Total utility is maximized
Demand for a normal product may shift outwards if ?
A. The price of a complement rises
B. The price of a substitute falls
C. Price decreases
D. income falls
Which best describes a demand curve ?
A. the quantity consumers would like to buy in an ideal world
B. The quantity consumers are willing and able to buy at each and every income all other things unchanged
C. The quantity consumers are willing to sell
D. The quantity consumers are willing and able to buy each and every price all other things changed
If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ?
A. 4
B. 0.25
C. -4
D. -0.25
The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ____________?
A. elastic
B. unitarily elastic
C. perfectly elastic
D. inelastic.
The price elasticity of demand is the ?
A. ratio of the percentage change in price to the percentage change in quantity demanded.
B. ratio of the percentage change in quantity demanded to the percentage change in price.
C. ratio of the change in quantity demanded to the change in price.
D. ratio of the change in price to the change in quantity demanded.
Market equilibrium exists when _________ at the prevailing price?
A. quantity demanded equals quantity supplied
B. quantity supplied is greater than quantity demanded
C. quantity demanded is less than quantity supplied
D. quantity demanded is greater than quantity supplied
The price of computer chips used in the manufacture of personal computers has fallen. This will lead to _________ personal computer?
A. a decrease in the supply of
B. a decrease in the quantity supplied of
C. an increase in the quantity supplied of
D. an increase in the supply of
Which of the following will NOT cause a shift in the demand curve for compact discs ?
A. A change in income.
B. A change in the price of compact discs
C. A change in wealth
A change in the price of pre-recorded cassette tapes
Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?
A. unrelated goods.
B. complements
C. perfect substitutes
D. substitutes.
Demand curves are derived while holding constant ?
A. incomes, tastes, and the price of other goods.
B. income and tastes
C. income, tastes, and the price of the good.
D. tastes and the price of other goods
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?
A. The diminishing marginal utility effect.
B. The ceteris paribus effect
C. The substitution effect
D. The income effect
The law of demand implies that ?
A. as prices fall demand increases
B. as prices fall, quantity demanded increase
C. as prices rise, demand decrease
D. as prices rise, quantity demanded increases