11th Principles of Economics MCQS
Market equilibrium is determined when
Demand < supply
Demand = supply
Demand > supply
Demand = zero
Cause of positive slope of supply curve
Change in cost of production
Increase in per unit profit due to increase in price
Change in technique of production
Fear of increase in cost of production and decrease in profit
According to law of demand, when price of a commodity decreases, then demand curve
Moves horizontally
Moves from left to right downward
Moves from left to right upward
Moves vertically
Which one of the following is not included in the assumptions of law of supply
cost of production
price of raw material
Methods of production
taste of consumer
Which one is increasing function of price
Supply
Demand
Consumption
Utility
If demand decreases by 15% due to 10% increase in Price, then elasticity of demand is
Zero
Equal to unity
Less than unity
More than unity
When demand and supply rise equally then equilibrium price
Zero
is more
Remains the source
isles
When demand curve shifts rightward (or upward), it is called
Rise of demand
Fall of demand
Contraction of demand
Extension of demand
If the total expenditure of the consumer increases due to increase in price, then nature of elasticity of demand will be
Equal to unity
Elasticity of demand = zero
More than unity
Less than unity
In order to satisfy some wants, more than one commodities are needed. Demand for such commodities is called
Composite demand
Direct demand
Joint demand
Derived demand
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