Economics MCQS with Answers 1st Year Chapter 6

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Economics MCQS with Answers 1st Year

If equilibrium price rises but equilibrium quantity is unchanged, the cause is
supply curve is vertical and demand increases
supply and demand both increase equally
supply and demand decrease equally
supply increases and demand is same

With an increase in cost of production, price of the product rises while supply of the product will.
Remain unchanged
Non of the three

Markets where firms supply goods and services demanded by households are
factor market
product market
open markets
resource markets

is a stable condition
is an unstable condition
is an important idea for predicting economics changes
is a state that can never be achieved in economics

Extension of supply will take place as a consequence of:
Change in population
Change in price
Change in technology
Change in money supply

Market equilibrium means
demand and supply of commodity are equal
number of buyers and sellers are equal
prices rise very slowly
no price is changing

A producers has one thousand tons of rice to be offered for sale at a certain price in future, it will be called.
Buffer stock
Supply of output

If we know that quantities bought and sold are equal, we can conclude that
all of the above
the market is in equilibrium
quantities demanded and supplied are also equal
there will be no tendency for a price change

One of the following is not an assumption of law of supply.
Cost of raw material should not changed
Political system should not changed
Cost of production should not changed
Production technique should not changed

If price is set above equilibrium level, there will be
supply curve will shift
shortage of commodity in the market
demand curve will shift
surplus commodity in the market

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