The demand curve shifts right. c) An increase in the equilibrium price and a decrease in the equilibrium quantity. In this section, we have given all varieties of GK MCQ Questions related to General Knowledge. A price elasticity of supply equal to one C. A price elasticity of supply less than one If the price of this good is $20, what quantity will be demanded? b) Smaller if demand is relatively elastic than if demand is relatively inelastic. If the consumer’s marginal benefit is the same no matter what quantity is consumed, then her demand curve will be vertical. Geoff Riley FRSA has been teaching Economics for over thirty years. If – given consumer preferences – a certain good has many close substitutes available, then: a) The demand for that good will be relatively inelastic, compared to goods for which there are few close substitutes. The diagram below illustrates 3 possible demand curves for coconuts. If an output (excise) tax of $5 per unit is introduced in this market, the price that consumers pay will equal ____ and the price that producers receive net of the tax will equal _____. a) A price ceiling. c) Market surplus will decrease by a + b + e + c. 8. a) 10 units. a) The cost of labor used to produce good X. 9. 13. 30. d) All of the above. If coffee and milk are complements, then which of the following will occur if the price of coffee increases? The demand curve shifts left. Which of the following statements about price ceilings is TRUE? 14. Which of the following statements is TRUE? c) At a price of P3, there is excess supply equal to the distance BE. a) A 1% increase in price will result in a 50% increase in quantity supplied. b) If demand is unit elastic. Use the diagram below to answer the following TWO questions. The supply curve shifts left. d) decrease; A. Then record whether the indicated currency appreciates or depreciates as a result of the change, by circling the appropriate … Which of the following is NOT a determinant of the supply of good X? Which of the following statements about these policies is TRUE? b) Consumption of medical services such that the marginal benefit is less than the marginal cost. The deadweight loss is zero. Which of the following statements about demand curves is TRUE? c) I, II, and III. Macroeconomics: Money, Banking, and RBI - MCQs with answers - Part I 1) Which among the following is considered to be the most liquid asset? a) $2; $5. The law of demand states that an increase in the price of a good: a. c) If demand is perfectly inelastic. c) Taking actions whenever the marginal benefit exceeds the marginal cost. b) A decrease in the price of baby formula produced in China and an increase in the price of baby formula produced outside China. Read important economics solved pdf mcqs with answers and solution for test preparation. Which of the following is NOT a determinant of the supply of good X? 7. d) Neither a) nor b). WATER SUPPLY ENGINEERING MCQ PDF PART – 6. Solutions: Case Study - The Housing Market, Topic 4 Part 2: Applications of Supply and Demand, Solutions: Case Study - Automation in Fast Food, Introduction to Environmental Protection and Negative Externalities, Solutions: Case Study - The Liberal Gas Tax, Introduction to Cost and Industry Structure, 7.4 The Structure of Costs in the Long Run. If demand is elastic, producers will bear a greater burden of the tax than consumers. Our online supply and demand trivia quizzes can be adapted to suit your requirements for taking some of the top supply and demand quizzes. d) a + b + c; d + f. 9. Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 10 Financial Markets with Answers Pdf free download. b) I and II only ... B Demand and Supply … a) Change in Demand b) Change in Supply c) Change in Demand and Change in Supply d) No change in Demand and Supply. The equilibrium price in this market is equal to: a) $6 per unit. Which of the following is NOT a determinant of the supply of good X? Shift demand inwards C. Shift supply outwards so more is supplied at each and every price, all other things unchanged D. Shift supply inwards. Goods and Services Tax MCQs. 1. a) A to C. c) Keep buying more units if marginal cost is greater than marginal benefit. At what price will producer surplus equal $2? The degree of response of demand to change in price is a) Income elasticity of demand b) Cross-elasticity of demand c) Price elasticity of demand d) All the above Ans (c ) 15. d) Excess supply (a surplus) of 25 units. 100 a week on ice cream, we … As a result, many Chinese parents buy baby formula that is produced outside China. The following two questions refer to the diagram below, which illustrates the domestic supply curve (SD) and demand curve for a good. b) c + e. d) All of the above. Suppose that the equilibrium quantity is reduced from Q1 to Q2 units, through the introduction of a price floor. a) The cost of inputs used to produce good X. a) $5; 30. CORRECT ANSWERS: MICROECONOMICS 1.C … a) Consumers are worse off as a result of the tax. d) The deadweight loss will be zero. 20. 5. b) 20 units. Increases the supply of that good. c) There is an excess supply (a surplus) equal to 210 units. b) Consumer price falls, producer price falls, and quantity increases. If the price of this good falls from P1 to P2, then consumer surplus will _____ by areas _____. c) a + b + c + e + f + g. Your Answer increase Select The Blank Question Like all organism, the firm too is an organism according to the _____ Correct Answer life-cycle theory. a) -1. (Assume no externalities.). 29. a) If there is a deadweight loss, then the revenue raised by the tax is greater than the losses to consumer and producers. 8. b) A price floor. c) A movement up and to the right along a supply curve. Creative Commons Attribution 4.0 International License. 7. They are duplicates of the questions found in the Topic sub-sections. If, when the price of a product rises from $1.50 to $2, the quantity demanded of the product decreases from 1000 to 900, the price elasticity of demand coefficient using the midpoint formula is a. Topic 1: Introductory Concepts and Models. Multiple Choice Multiple Answer Question Demand forecasts are necessary for Correct Answer Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms Your Answer … D) Government Sales Tax. If a tariff of $2 is introduced, then: a) Imports will decrease and social surplus will increase. the demand curve shifts to the right. If supply is perfectly inelastic, then producers bear none of the burden of a tax, no matter what the value of own-price elasticity of demand. 1. Which of the following statements is TRUE? Note that P × Q equals $900 at every point on this demand curve. microeconomics quiz questions and answers for demand and supply for interview, entry test and competitive examination freely available to download for pdf export CSS :: Demand and Supply @ : Home > Economics > Demand and Supply. b) 1.0. c) Neither a) nor b) are true. c) c+d. The following TWO questions refer to the supply curve diagram below. b) Consumers will pay a price of $30, quantity sold will be 40 units, of which 30 are produced domestically. On the graph, the movement from S to S 1 could be caused by a. a decrease in the price of the good. a) income b) price c) satisfaction d) none Answer: (c) Page 5 CPT Section C General Economics Unit 2 Ms. Anita Sharma MCQs for Ordinal Approach MCQ.1:Indifference analysis is based on the idea of a) Law of DMU b) Ordinal Utility c) Cardinal Utility d) None Answer: (b) MCQ.2; MRS is the rate at which the … GST was implemented in India from. Demand for a commodity refers to: (a) Desire for the commodity (b) Need for the commodity b) 45 units. b) Producer surplus is equal to the area under the supply curve. c) An increase in the price of a substitute for this good. Choose the one alternative that best completes the statement or answers the question. B)the difference between one price and another. Own-price elasticity of demand is equal to: 3. SURVEY . A decrease in quantity demanded is, graphically, represented by: a) A leftward shift in the demand curve. The law of supply states that an increase … d) All of the above. If there are no trade restrictions in place, what will be the equilibrium quantity of IMPORTS? a) $1,000. B)the units used to measure price and the units used to measure quantity. Governments and Markets. answer choices . b) The amount of money a consumer is willing to pay for a good. 8. Tags: Question 3 . Multiple Choice Questions on Currency Inflation in Indian Economy for your upcoming competitive examinations like Banking SBI PO, SSC, CGL, MTS, CHSL, Railway Group D, IAS and UPSC.. A set of important objective questions with answers which have … 13. b) $3. Demand is unit elastic at a price of $30, and inelastic at all prices less than $30. I. b) I and II only. b) Spending on socks may either increase or decrease as a result of the tax. 6. According to the manufacturing-based definition of quality Assume that the world price is equal to $20 per unit, and initially there are no trade restrictions in place. d) III only. a) Consumer price rises, producer price falls, and quantity increases. Refer to the supply and demand curves illustrated below for the following THREE questions. b) P = $4, Q = 8. 7. Suppose you are told that the own-price elasticity of supply equal 0.5. For inferior commodities, income effect is— (A) Zero (B) Negative (C) Infinite … d) All of the above will occur. 2. If a tariff of $10 per unit is introduced in the market, then, at the new equilibrium: a) Consumers will pay a price of $20, quantity sold will be 60 units, of which 40 are imported. 5. b) An decrease in the price of X will result in an increase in the equilibrium quantity of Y. c) There is excess demand (a shortage) equal to 20 units. d) k + f + j + g. 4. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. a) $14,800. a) At the competitive equilibrium, market surplus is maximized. the supply curve shifts to the left. Buying the fourth unit will increase total benefits by more than total costs. 2. If steak is a normal good, what are the combined effects in the market for steak? b) A rightward shift in the supply curve. A buyer has purchased three units of good X. Identify a competitive equilibrium of demand and supply. c) Both a) and b) are true. III. d) Consumer surplus, producer surplus, and social surplus all decrease. If a sin tax is placed on sales of alcohol, the demand curve shifts to the left. d) III only. II. a) 1/3. b. an increase in income. WATER SUPPLY ENGINEERING MCQ PDF PART – 1. d) This tax will result in a deadweight loss. Supply and demand are basic and important principles in the field of economics.Having a strong grounding in supply and demand is key to understanding more complex economic theories. 10. Test 2: A Level Economics: MCQ Revision on Aggregate Demand and Aggregate Supply Practice exam questions Test 1: A Level Economics: MCQ Revision on Market Failure and Government Intervention b) e. 22. Human Resource Planning - MCQs with answers - Part 1 1. If no other curves have shifted, which of the following can we infer? Use the diagram below – which illustrates the domestic supply and demand curves for a good – to answer the following TWO questions. If a subsidy is introduced in a market, then which of the following statement is TRUE? The demand curve for a good is derived from the: a) Marginal cost of the good. b) A to B. the supply curve shifts to the right. The supply curve shifts right. d) Either a) or c) will result in zero deadweight loss from taxation. c) An increase in wages paid to workers who produce the good. b. an increase in income. Note that the two demand … 24. b) The quantity of coffee supplied will decrease. (l) “Change in demand” occurs due to the change in: (i) Income (ii) Prices of related goods (iii) Taste and preference (iv) All of these (m) In case of perfectly elastic demand, demand curve becomes: (i) Horizontal (ii) Vertical (iii) Downward sloping (iv) None of these (n) In case of Unitary elastic demand, the value of Ed is: (i) Zero … II. Chapter 04. Use the demand curve diagram below to answer the following question. If the price of this good falls from $30 to $20, but the consumer is prohibited from buying more than 5 units of the good, by how much will consumer surplus increase? At the equilibrium price in this market, consumer surplus is equal to area ___ and producer surplus is equal to area ____. 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