Top 150+ Solved General Economics 1 MCQ Questions Answer
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 the commodity 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 quantity demanded, 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