Economics MCQs

Page No. 348

Adding up the quantities demanded of a good by different people facing the same price gives us the ?


aSupply curve

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bMarket demand curve

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cDemand curve

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d Market supply curve

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View Answer Market demand curve

Economics assumes that people consume goods and services to achieve ?


a Status

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b Prestige

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c Utility

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d Self-esteem

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View Answer Utility

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?


aincrease quantity demanded, reduce quantity demanded

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b increase quantity demanded, increases quantity demanded

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creduce quantity demanded, reduce quantity demanded

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dreduce quantity demanded, increase quantity demanded

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Inferior goods have _________ and luxury goods have _________?


a negative income elasticity income elasticity greater than 1

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b income elasticity greater than 1, negative income elasticities

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cPositive income elasticities, negative income elasticities

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dNone of the above

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Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?


asubstitutes inferior

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bnormal, complements

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csubstitutes complements

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dnormal, inferior

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If demand is __________ then price cuts will _________ spending?


a inelastic; increase

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b elastic; increase

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celastic, decrease

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dnone of the above

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View Answer elastic; increase

Increased levels of spending on imports ?


a shift aggregate supply to the right

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b shift aggregate supply to the left

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cshift aggregate demand to the right

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d shift aggregate demand to the left

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Increase unemployment benefits and less incentive to work would ?


a shift 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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d shift aggregate demand to the left

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Which of the following would decease aggregate demand ?


aincrease consumption

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b increasing export revenue

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c increased taxation revenue

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dincreased investment

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An increase in aggregate demand will have most effect on prices if ?


aAggregate supply is price inelastic

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bAggregate supply is price elastic

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cAggregate supply has a unitary price elasticity

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d Aggregate demand is price inelastic

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