Economics Ics Part 1 English Medium Online Test With Answers

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Economics Ics Part 1 English Medium Online Test

Sr. # Questions Answers Choice
1 Demand is a function of price quantity supply none
2 Income elasticity of demand for normal good is always 1 more than one negative positive
3 When price elasticity of demand for normal goods in calculated, the value is always positive negative constant greater than one
4 Mr. Suleri bought 50 litters of petrol when his monthly income was Rs. 25000. Now his monthly income has risen to Rs. 50000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is 1 100% less than one more than one
5 The demand of a commodity having many substitutes is more elastic less elastic zero elastic infinite elastic
6 The elasticity of demand of durable goods is less than unity greater than unity equal to unity zero
7 Price and demand are positively correlated in case of necessities comforts Giffen goods Luxuries
8 Haris has a special taste for chicken rolls of college canteen. The owner of the canteen doubles the price of chicken roll. Haris did not respond to the increase in prices and kept on demanding the same quantity of chicken roll. His demand for chicken roll is perfectly elastic perfectly inelastic elastic less elastic
9 Which of the following is a demand function? Q + 4P = 20 Q = 35 + 3P Q - 2P - 15 =0 5P - Q = 4
10 This is the assumption of law of demand price of the commodity should not change Quantity demanded should not change Price of substitutes should not change Demand curve must be linear
11 If demand is inelastic, a change in the price will change the quantity in same direction will change total revenue in same direction will change total revenue in the opposite direction will not change quantity
12 When cross elasticity of demand for A and B is positive number, one can conclude that the goods are cheaper the goods are inferior the goods are substitutes the goods are complements
13 Irrespecitve of price, Somia always spends Rs. 100 a week on ice cream, we conculde that elasticity of demand is 0 elasticity of demand is 1 elasticity of demand id infinite law of demand has been violated
14 If demand is unitary elastic, a 25% increase in price will result in 25% change in total revenue no change in quantity demanded 1% decrease in quantity demanded 25% decrease in quantity demanded
15 When demand is perfectly inelastic, an increase in price will result in decrease in total revenue increase in total revenue no change in total revenue decrease in quantity demanded
16 The following are causes of shift in demand EXCEPT the one change in income change in price change in fashion change in prices of substitutes
17 If elasticity of demand is very low it shows that the commodity is a necessity a luxury has little importance in total budget a and c above
18 Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is 10% 30% 3 1/3
19 Other things equal, if a good has more substitutes, its price elasticty of demand is larger smaller zero unity
20 If quantity demanded is completely unresponsive to changes in price, demand is inelastic unit elastic elastic perfectly inelastic
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