Top 150+ Solved Basics of Economics Studies MCQ Questions Answer
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
Q. Which of the following is the reason for law of demand:
a. Price effect
b. Backlash effect
c. Income effect
d. Real balance effect
Q. A market:
a. Necessarily refers to a meeting place between buyer and sellers
b. Does not necessarily refers to a meeting place between buyer and sellers
c. Extends over the entire country
d. Extends over a city
Q. Net addition to total cost is called:
a. Marginal cost
b. Average cost
c. Fixed cost
d. Variable cost
Q. The market equilibrium for a commodity is determined by :
a. Market demand
b. Market supply
c. Balancing of the forces of demand and supply
d. Any of the above
Q. When there are only few sellers of the commodity, the market is called:
a. Monopoly
b. Duopoly
c. Oligopoly
d. Monopsony
Q. If the supply curve of the commodity is having a positive slope, a rise inthe price of the commodity, results in:
a. Increase in supply
b. Increase in quantity supplied
c. Decrease in supply
d. Decrease in quantity supplied
Q. From the position of stable equilibrium, the market supply of a commoditydecreases, while the market demand remains unchanged, then:
a. Equilibrium price falls
b. Equilibrium quantity rises
c. Both equilibrium price and equilibrium quantity decreases
d. Equilibrium price rises, but equilibrium quantity falls