Top 150+ Solved Basics of Economics Studies MCQ Questions Answer
Q. Elasticity of supply for a positively sloped straight line supply curve thatintersects the price axis is:
a. Equal to zero
b. Equal to one
c. Greater than one
d. Constant
Q. In which of the following market, advertisement is absent:
a. Monopolistic competition
b. Perfect competition
c. Oligopoly
d. None of the above
Q. -------------- cost can never become zero.
a. Variable cost
b. Fixed cost
c. Marginal cost
d. Average cost
Q. If a positively sloped linear supply curve crosses the quantity axis, theelasticity of supply is:
a. Inelastic
b. Elastic
c. Unitary elastic
d. Perfectly elastic
Q. If a positively sloped linear supply curve passes through the origin, theelasticity of supply is
a. Inelastic
b. Elastic
c. Unitary elastic
d. Perfectly elastic
Q. The horizontal supply curve parallel to quantity axis represents
a. Elastic supply
b. Inelastic supply
c. Perfectly elastic supply
d. Perfectly inelastic supply
Q. Change in quantity supplied of a product can result from
a. Changes in own price
b. Changes in cost of production
c. Change in technology
d. Change in price of related products
Q. At prices above the equilibrium price
a. Quantity supplied exceeds quantity demanded
b. Quantity demanded exceeds quantity supplied
c. There is shortage
d. All of the above is possible
Q. An increase in market supply, demand remaining the same causes
a. Increase in equilibrium price
b. Decrease in equilibrium quantity
c. Decrease in equilibrium price and increase in equilibrium quantity
d. Both equilibrium price and quantity rises
Q. An increase in market demand, supply remaining the same results in
a. Decrease in equilibrium price
b. Decrease in equilibrium quantity
c. Decrease in equilibrium price and increase in equilibrium quantity
d. Both equilibrium price and quantity rises
Q. There is no distinction between firm and industry in
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. Oligopoly