Economics MCQs

Page No. 350

If a product is a vablen good ?


aDemand is inversely related to income


bDemand is inversely related to price


cDemand is directly related to price


dDemand is inversely related to the price of substitutes



An increase in the price of a complement for product A would ?


aShift demand for Product A outwards


b Shift demand for product A inwards


cShift supply for product A outwards


d Shift supply for product A inwards



If marginal utility is zero ?


aTotal utility is zero


bAn additional unit of consumption will decrease total utility


cAn additional unit of consumption will increase total utility


dTotal utility is maximized



Demand for a normal product may shift outwards if ?


aPrice decreases


bThe price of a substitute falls


cThe price of a complement rises


dincome falls



Which best describes a demand curve ?


athe quantity consumers would like to buy in an ideal world


bThe quantity consumers are willing to sell


cThe quantity consumers are willing and able to buy at each and every income all other things unchanged


dThe 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


View Answer 0.25

The price elasticity of demand is the ?


aratio of the change in price to the change in quantity demanded.


bratio 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.


dratio of the percentage change in price to the percentage change in quantity demanded.



Market equilibrium exists when _________ at the prevailing price?


aquantity demanded equals quantity supplied


bquantity demanded is less than quantity supplied


cquantity supplied is greater than quantity demanded


dquantity 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 quantity supplied of


b a decrease in the supply of


can increase in the quantity supplied of


dan increase in the supply of



Which of the following will NOT cause a shift in the demand curve for compact discs ?


aA change in wealth


b A change in the price of compact discs


cA change in income.


dchange in the price of pre-recorded cassette tapes



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