Top 150+ Solved Principles of Micro Economics 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. A fall in the price of the commodity holding everything else constant resultsin:
a. Increase in demand
b. Decrease in demand
c. Increase in quantity demanded
d. Decrease in quantity demanded
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 income elasticity of demand is greater than one, then the commodity is:
a. Necessity
b. Luxury
c. Inferior
d. Non-related commodity
Q. If a positively sloped linear supply curve crosses the quantity axis, theelasticity of supply is:
a. Inelastic
b. Elastic
c. Unitary elastic
d. Perfectly elastic
Q. The horizontal supply curve parallel to quantity axis represents:
a. Elastic supply
b. Inelastic supply
c. Perfectly elastic supply
d. Perfectly inelastic supply
Q. A fall in income of the consumer, other things being equal, causes:
a. Increase in demand
b. Decrease in demand
c. Increase in quantity demanded
d. Decease in quantity demanded
Q. Which of the following causes an increase in supply:
a. Fall in price of inputs
b. Increase in number of producers
c. Decrease in the price of production substitutes
d. All of the above