Top 250+ Solved Managerial Economics 1 MCQ Questions Answer
Q. Which of the following is not an exception to the downward sloping of demand curve
a. Giffen paradox
b. Veblen effects
c. Necessaries
d. Income effect
Q. The concept of Elasticity of Demand was introduced by
a. Alfred Marshall
b. Lionel Robbins
c. Adam smith
d. J M Keynes
Q. When a small change in price leads to infinite change in quantity demanded, it is called
a. Perfectly elastic demand
b. Perfectly inelastic demand
c. Relative elastic demand
d. Relative inelastic demand
Q. Quantity remains the same whatever the change in price, this is the case of
a. Perfectly elastic demand
b. Perfectly inelastic demand
c. Relative elastic demand
d. Relative inelastic demand
Q. In the case of ………… a small change in price leads to very big change in quantity demanded
a. Perfectly elastic demand
b. Perfectly inelastic demand
c. Relative elastic demand
d. Unit elastic demand
Q. In case of …….. quantity demanded changes less than proportionate to changes in price
a. Perfectly elastic demand
b. Perfectly inelastic demand
c. Relative elastic demand
d. Relative inelastic demand
Q. When the change in demand is exactly equal to the change in price, it is called
a. Perfectly elastic demand
b. Perfectly inelastic demand
c. Relative elastic demand
d. Unitary elastic demand
Q. Perfect elasticity is known as
a. Finite elastic
b. Infinite elastic
c. Unitary elastic
d. Zero elastic
Q. in the case of perfect inelasticity, the demand curve is
a. Vertical
b. Horizontal
c. Flat
d. Steep
Q. An increase in income may lead to an increase in the quantity demanded, it is
a. Positive income elasticity
b. Zero income elasticity
c. Negative income elasticity
d. Unitary income elasticity
Q. A positive income elasticity may be
a. Unit income elasticity
b. Income elasticity greater than unity
c. Income elasticity less than unity
d. Any of the above
Q. The proportionate change in the quantity demanded of a commodity in response to change in the priceof another related commodity is called
a. Price elasticity
b. Related elasticity
c. Cross elasticity
d. Income elasticity
Q. Tea and coffee are
a. Complimentary goods
b. Substitute goods
c. Supplementary goods
d. Reserve goods
Q. Car and petrol are
a. Complimentary goods
b. Substitute goods
c. Supplementary goods
d. Reserve goods
Q. If the commodities are substitute in nature, cross elasticity will be
a. Negative
b. Positive
c. Zero
d. Any of the above