Top 150+ Solved Basics of Economics MCQ Questions Answer
Q. Demand varies ------------- with price.
a. directly
b. positively
c. inversely
d. none of the above
Q. In the case of luxury goods, the income elasticity of demand will be:
a. less than unity
b. unity
c. more than unity
d. all the above
Q. Income elasticity is positive, but less than unity in the case of:
a. necessity
b. luxury
c. inferior
d. substitutes
Q. In drawing an individual demand curve for a commodity, all but whichof the following are kept constant:
a. individual’s money income
b. the prices of the related commodity
c. price of the commodity under consideration
d. tastes of the consumer
Q. When an individual’s income rises, when everything else remains thesame, his demand for normal goods:
a. rises
b. falls
c. remains the same
d. any of the above is possible
Q. When an individual’s income falls, when everything else remains thesame, his demand for inferior goods:
a. increases
b. decreases
c. remains unchanged
d. cannot say
Q. When the price of the substitute commodity of X falls, the demand for X:
a. rises
b. falls
c. remains unchanged
d. all of the above is possible
Q. If the quantity demanded remains unchanged as the price of thecommodity falls, the coefficient of price elasticity of demand is:
a. greater than
b. one equal to one
c. smaller than one
d. zero
Q. If the income elasticity of demand is greater than one, then thecommodity is:
a. necessity
b. luxury
c. inferior
d. non-related commodity
Q. Which of the following is an exception to the law of demand?
a. giffen good
b. normal good
c. superior good
d. all of the above
Q. The law of diminishing marginal utility was popularized by:
a. keynes
b. marshall
c. smith
d. samuelson
Q. If the income elasticity of demand for a commodity is found to be 0.4,then the commodity concerned is:
a. luxury
b. necessity
c. giffen’s goods
d. independent good
Q. Cross elasticity of demand in the case of substitutes:
a. zero
b. negative
c. positive
d. infinity
Q. If a small change in price leads to infinitely large change in quantitydemanded, then the demand is:
a. perfectly elastic
b. perfectly inelastic
c. elastic
d. inelastic