Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. The demand curve for Giffen’s goods:
a. Vertical
b. Horizontal
c. Negative slope
d. Positive slope
Q. In the case of luxury goods, the income elasticity of demand will be:
a. Less than unity
b. Unity
c. More than unity
d. All the above
Q. Income elasticity is positive, but less than unity in the case of:
a. Necessity
b. Luxury
c. Inferior
d. Substitutes
Q. The change in demand is due to the change in :
a. Income
b. Own price
c. Prices of related products
d. Expectations
Q. Supply curve represents -------- relationship between quantity and price
a. Direct
b. Inverse
c. Either direct or inverse
d. None of the above
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. 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. In drawing an individual demand curve for a commodity, all but which of the following are kept constant:
a. Individual’s money income
b. The prices of the related commodity
c. Price of the commodity under consideration
d. Tastes of the consumer
Q. A fall in the price of the commodity holding everything else constant results in:
a. Increase in demand
b. Decrease in demand
c. Increase in quantity demanded
d. Decrease in quantity demanded
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. When both the price of a substitute and the price of complement of X rises, the demand for X:
a. Rises
b. Falls
c. Remains unchanged
d. All of the above is possible
Q. If the supply curve of the commodity is having a positive slope, a rise in the price of the commodity, results in:
a. Increase in supply
b. Increase in quantity supplied
c. Decrease in supply
d. Decrease in quantity supplied