Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. The quantity that an individual supplier is prepared to supply over a period of time is a function of
a. Price of the product
b. Cost of production of the product
c. Both
d. None
Q. A desire culminates into demand or effective desire only when it is backed by
a. Purchasing power
b. Willingness of spend money
c. Both
d. None
Q. The …………….. price that a customer is willing to pay for a given quantity is called demand price
a. Maximum
b. Minimum
c. Bargained
d. Floor
Q. Goods or services that are not necessary for living are
a. Needs
b. Desires
c. Wants
d. Essentials
Q. Complementary goods are those which are ……………
a. Consumed simultaneously
b. Close competitive
c. Both
d. Unrelated
Q. Sugar and tea are …………… goods
a. Complementary
b. Prefect substitute of each other
c. Both
d. Unrelated
Q. If price of sugar increase, the demand for tea will ………….
a. Fall
b. Increase
c. Not affected
d. No relation
Q. Increase in price of a product reduces the purchasing power as a result of which demand for a product goes up. This effect is known as
a. Substitution effect
b. Income effect
c. Diminishing marginal utility concept
d. Law of diminishing returns
Q. Traditional approach to law of Demand was propounded by
a. Giffen
b. A Samulson
c. Alfred Marshall
d. Pique
Q. According to traditional approach the factor responsible for operation of downward slope of demand curve are
a. Change in number of consumers
b. Law of decreasing marginal utility
c. Alternative uses of goods
d. All the three
Q. According to Modern approach, law of demand is caused by
a. Income effect
b. Substitution effect
c. Both
d. None
Q. Which of these are exception to law of Demand
a. Giffen effect/goods
b. Future change in prices
c. Change in fashion
d. All the three
Q. Shift in Demand curve or change in Demand curve occurs due to
a. Increase in price
b. Decrease in cost of production
c. Change in Cetris paribus conditions
d. All the three
Q. Change in quantity demanded or Movement along demand curve occurs due
a. Due to change in price only
b. Change in Cetris paribus conditions only
c. Change in cost of production
d. Change in technology
Q. Increase in Demand is also known as – in economics
a. Expansion in demand
b. Compression in demand
c. Extension in demand
d. Extraction in demand