Question # 1

Suppose the demand curve for a good shifts rightward, causing the equilibrium price to increase this increase in the price of the good results in.

Choose an answer

A rightward shift of the supply curve

An increase in quantity supplied

A leftward shift of the supply curve

A leftward movement along the supply curve

If a government imposed price celling causes the observed price in a market to be below the equilibrium price.

Choose an answer

There will be excess demand

There will be excess supply

The curves will shift to make a new equilibrium at the regulated price

None of the above

In the labor market if the government imposes a minimum wage that is below the equilibrium wage then.

Choose an answer

Workers who wish to work at the minimum wage will have a difficult time finding jobs.

Firms will hire fewer workers than without the minimum wage law.

Some workers may lose their jobs as a result

Nothing will happen to the wage rate or employment

If the price of automobiles were to decrease substantially the demand curve for public transpiration would most likely.

Choose an answer

shift rightward

Shift leftward

Remain unchanged

Remain unchanged while quantity demanded would change

If price is initially above the equilibrium level.

Choose an answer

the supply curve will shift rightward

The supply curve will shift letward

Excess supply exists

All firms can sell as much as they want

If the demand curve for a good is horizontal and the price is positive then a leftward shift of the supply curve results in.

Choose an answer

a price of zero

An increase in price

A decrease in price

No change in price

Economists tend to judge a model based upon

Choose an answer

the realty of its assumptions

The accuracy of its predications

Its simplicity

Its complexity

For a given positively sloped supply curve the price increase to consumers resulting from a specific tax imposed on sellers will be.

Choose an answer

Greater the more price elastic demand is

Greater the less price elastic demand is

Equal to the entire tax when demand is perfectly elastic

Equal to half of the tax whenever demand is unit elastic

A specific tax on sellers will

Choose an answer

shift the demand curve to the right

Shift the demand curve the left

Shift the supply curve to the right

Shift the supply curve to the left

To determine the total demand for all consumers sum the quantity each consumer demands.

Choose an answer

At a given price

At all prices and then sum this amount across all consumers

Both a and b will generate the same total demand

None of the above

The percentage change in the quantity demanded in response to a percentage change in the price is known as the.

Choose an answer

slope of the demand curve

Excess demand

Price elasticity of demand

All of the above

More Classes

Other Links

PPSC Economics Chapter 6 Economics Model MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer