| 1 |
If quantity demanded for a commodity changes due to the change in income, it is called |
- A. Price elasticity
- B. Point elasticity
- C. Cross elasticity
- D. Income elasticity
|
| 2 |
Finance minister in order to increase the public revenue imposes the tax on the commodities whose demand is more elastic |
- A. At low rate
- B. At high rate
- C. Some times decreases the rate and some times increases
- D. Does not change Tax rate
|
| 3 |
If two goods are substitute, cross Elasticity of demand will be: |
- A. Zero
- B. Infinite
- C. Positive
- D. Negative
|
| 4 |
Supply curve moves from left to right upward, this tendency is called |
- A. Negative
- B. Positive
- C. Horizontal
- D. Vertical
|
| 5 |
Cause of shifting of supply curve is |
- A. Change in price
- B. Other factors
- C. Change in tax
- D. Change in income
|
| 6 |
The goods on which law of demand does not apply, are called |
- A. Services
- B. Goods and services
- C. Giffin goods
- D. Capital goods
|
| 7 |
Elasticity of demand for the commodities which have substitutes, is |
- A. More elastic
- B. Less elastic
- C. Infinite
- D. Zero
|
| 8 |
When price of a commodity decreases but its demand does not change, this situation is called |
- A. Constant demand
- B. Fall of demand
- C. Rise of demand
- D. Extension of demand
|
| 9 |
If demand falls more proportionately then that of supply then |
- A. Equilibrium price increases
- B. Equilibrium price decreases
- C. Equilibrium price does not change
- D. Equilibrium quantity increases
|
| 10 |
According to law of supply which factor changes the supply |
- A. cost of producton
- B. price
- C. climatic conditions
- D. level of income
|
