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Online Tests
Economics Ics Part 1 English Medium Chapter 4 Online Test MCQs With Answers
Question # 1
One of the following is not an exception the law of demand.
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Very high price products
Very low price products
Ignorance of consumers
Non of the above
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Question # 2
A seller can increase his sales revenue by charging a lower price, if the demand has
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e < 1
e = 1
e > 1
e = 0
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Question # 3
If elasticity of demand is very low it shows that the commodity is
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a necessity
a luxury
has little importance in total budget
a and c above
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Question # 4
Law of demand shows relation between
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income and price of commodity
price and quantity of a commodity
income and quantity demanded
quantity demanded and quantity supplied
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Question # 5
Income elasticity of demand for normal good is always
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1
more than one
negative
positive
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Question # 6
The demand of a commodity having many substitutes is
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more elastic
less elastic
zero elastic
infinite elastic
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Question # 7
When price elasticity of demand for normal goods in calculated, the value is always
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positive
negative
constant
greater than one
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Question # 8
This is the assumption of law of demand
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price of the commodity should not change
Quantity demanded should not change
Price of substitutes should not change
Demand curve must be linear
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Question # 9
Which one is the assumption of law of demand?
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price of the commodity should not change
quantity demand should not change
income of the consumer should not change
none of the above
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Question # 10
If demand has unit price elasticity, a change in price causes
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increase in total revenue
decrease in total revenue
no change in total revenue
indeterminate
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Question # 11
Normally a demand curve will have the shape
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horizontal
vertical
downward sloping
upward sloping
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Question # 12
The demand curve is negatively sloped due to
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Income effect
Substitution effect
Price effect
All the three
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Question # 13
Market demand curve is a summation of all individual demand curves as
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Vertical
horizontal
mathematical
local
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Question # 14
Which of the following is a demand function?
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Q + 4P = 20
Q = 35 + 3P
Q - 2P - 15 =0
5P - Q = 4
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Question # 15
The demand of a will expand when:
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Other things do not remain constant.
Price of the products changes.
Value of money falls.
None of the three
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Question # 16
The demand curve slopes downward from left to right because of:
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Income effect
Substitution effect
Entry of new buyers
All of the above
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Question # 17
Which one can cause a change in demand
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change in income
change in supply
change in tastes
a and c of above
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Question # 18
Price elastic of demand measures
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change in price caused by changes in demand
the rate of change of sales
the responsiveness of demand to price changes
the value of sales at a given price
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Question # 19
A horizontal demand curve has a price elasticity of
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zero
infinity
1
variable
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Question # 20
When the price of a product falls and as a concequence the demand for the product increase. it will be.
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Rise of demands
Fall of demand
Extension of demand
Contraction on demand
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Question # 21
If demand is unitary elastic, a 25% increase in price will result in
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25% change in total revenue
no change in quantity demanded
1% decrease in quantity demanded
25% decrease in quantity demanded
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Question # 22
The elasticity of demand of durable goods is
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less than unity
greater than unity
equal to unity
zero
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Question # 23
Demand is a function of
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price
quantity
supply
none
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Question # 24
One of the following will not cause a rise and fall on demand.
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Change in income
Change in weather
Discovery of a substitute
Distribution of income remaining the same
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Question # 25
Which one is not determinant of demand
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tastes
income
method of production
price
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Question # 26
Irrespecitve of price, Somia always spends Rs. 100 a week on ice cream, we conculde that
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elasticity of demand is 0
elasticity of demand is 1
elasticity of demand id infinite
law of demand has been violated
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Question # 27
The law demand will not be valid in case of.
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Very high price products
Normal goods
Price effect
Income effects
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