Top 150+ Solved Basics of Economics Studies MCQ Questions Answer
Q. Other things remaining the same, the quantity of a product demandedincreases with ------------ in price.
a. Increase
b. Decrease
c. Variation
d. None of the above
Q. Relation between price of a commodity and demand for anothercommodity is measured by:
a. Price elasticity
b. Income elasticity
c. Cross elasticity
d. Elasticity of substitution
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 which of 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 the same, 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 the same, 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 the commodity 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