11th Principles of Economics MCQS
Elasticity of demand for substitute and jointly demanded goods is called
Arc elasticity
Income elasticity
Cross elasticity
Point elasticity
Price is determined under perfect competition
By forces of demand and supply
By buyers
By government
By sellers
When price decreases, supply
Remains fixed
Extends
Contracts
Becomes zero
Finance minister in order to increase the public revenue imposes the tax on the commodities whose demand is more elastic
Does not change Tax rate
At low rate
Some times decreases the rate and some times increases
At high rate
If elasticity of supply is equal to unity then extending supply curve downward, it passes through or crosses
Point of origin
y-axis
x-axis
Becomes vertical
If the demand for a commodity is more elastic, then an entrepreneur in order to increase his profit
Will decrease its price
Will not change its price
Will increase its price
None of these
Who did present unity method to measure elasticity of demand
Adam Smith
keynes
Robbins
Marshall
When supply increases due to other factors besides price, it is called
Extension of supply
Rise of supply
Fall of supply
Contraction of supply
If supply decreases due to decrease in price, it is called
Rise of supply
Contraction of supply
Extension of supply
Fall of supply
If price of a commodity remains constant but its supply decreases or price increases but supply remains constant, it is called
Extension of supply
Rise of supply
Fall of supply
Contraction of supply
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