Economics MCQs

Page No. 344

The opportunity cost of a student is____________?


a Course fees and rent

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b A loan from the bank

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c What the student could have earned in the best job available by not studying

✓


dWhat the student will earn after graduation

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If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?


a increase

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b not change

✓


c decrease

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dshift

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View Answer not change

A measurement showing how quantity demanded varies with income is the ?


a Price elasticity of demand

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b Cross-price elasticity of demand

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c budget elasticity of demand

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dincome elasticity of demand

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The price elasticity of demand measures ?


aThe responsiveness of quantity demanded to a change in price

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bHow far a demand curve shifts

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ca change in price

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da change in quantity demanded

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Increased level consumption ?


ashift aggregate supply to the right

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bshift aggregate supply to the left

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cshift aggregate demand to the right

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dshift aggregate demand to the left

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Improved training of employees would ?


aShift aggregate supply to the right

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bShift aggregate supply to the left

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cShift aggregate demand to the right

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dshift aggregate demand to the left

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Which of the following would increase aggregate demand?


aIncreased saving

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bIncreasing import spending

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c Increased taxation revenue

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d increased investment

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Aggregate demand will increase if ?


aconsumption falls

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binvestment falls

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cExports fall

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dimports fall

✓


View Answer imports fall

The price elasticity of supply is +4 The price increases by 15% sales were originally 200 units What will they be now ?


a80 units

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b320 units

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c60 units

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d120 units

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View Answer 320 units

An increase in productivity should ?


a Lead to a contraction of supply

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bLead to an expansion of supply

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c Lead to a shift in supply outwards (i.e more supplied at each and every price)

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dLead to a higher equilibrium and lower equilibrium quantity

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