Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. Which of the following Elasticities measure movement along a curve, rather than a shift in the curve:
a. Price elasticity of demand
b. Income elasticity of demand
c. Cross elasticity of demand
d. None of the above
Q. Cross elasticity of demand in the case of substitutes:
a. Zero
b. Negative
c. Positive
d. Infinity
Q. A movement down the given demand curve shows:
a. Increase in demand
b. Decrease in demand
c. Extension in demand
d. Contraction in demand
Q. Which of the following results in an increase in an increase in demand:
a. Fall in prices of substitutes
b. Increase in price of complementary goods
c. Fall in consumer’s income
d. None of the above
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. An increase in supply means:
a. Movement down given supply curve
b. Movement upward given supply curve
c. Leftward shift in supply curve
d. Rightward shift in supply curve
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. A fall in the market demand, supply remaining the same results in:
a. Increase in equilibrium price
b. Increase in equilibrium quantity
c. Increase in equilibrium price and decrease in equilibrium quantity
d. Both equilibrium price and quantity falls
Q. Which one of the following elasticities takes the average of prices and quantities:
a. Point elasticity of demand
b. Arc elasticity of demand
c. Income elasticity of demand
d. Cross elasticity of demand
Q. As a result of a fall in the price total expenditure on the commodity decreases, the coefficient of elasticity will be:
a. Equal to one
b. Greater than one
c. Less than one
d. Cannot say
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. When demand curve is rectangular hyperbola, the value of price elasticity of demand will be:
a. Zero
b. One
c. Greater than one
d. Infinity
Q. On a linear demand curve, the coefficient of price elasticity is unity, then the value of MR will be:
a. Positive
b. Zero
c. Negative
d. One