Economics MCQS with Answers 1st Year Chapter 6

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

Rise

Fall

Markets where firms supply goods and services demanded by households are

factor market

product market

open markets

resource markets

Equilibrium

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

Stock

Supply of output

Production

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