Quiz Questions mcqs in economics

QUIZ UNIT 2

Presented by:

Vibhor Agarwal

Q1. Father of Economics ?

a. Alfred Marshall b. Adam smith c. Prof. Samuelssond. Prof. kines

Q2. Nature Of Economics ?

a. Art

b. Science

c. A & B both

d. None of these

Q3. Economics is derived from Greek word ?

a. Oikosomikos b. Oikosnomikos c. Oikosmonikosd. None of the above

Q4. Micro and macro term were introduced by ?

a. Prof Samuelson in 1994b. Prof John Robinson in 1998c. Prof Rajnerfrish in 1993d . Prof J B Shaw in 1990

Q5. Macroeconomics deals with ?

a. Behavior of the firm b . The activities of individual units c . Economic Aggregates d . The behavior of the electronic industry

Q6. Managerial Economics Deals with problem of ?

a. An individual Firm b. An Industry c. An Economy d . Global Economy

Q7. Managerial Economy as a special branch of economics ?

A. Provide Ready – Make solutions to business Problems

B. Provide Logic and Methodology to find Solution to Business Problems

C . Provide theoretical background D . Provide alternative answer to specific

business problems .

Q8. Demand is the ?

a. Unlimited want of consumer b. Entire Relationships b/w the quantity

demanded and the price of the goods c. Willingness to pay for a good if income is

large enough d. Liability to pay for a good

Q9. Law of demand is ?a. P D b. P 1/Dc. A and B bothd. None of these

Q10. Demand for a commodity refers to ?a. Desired for the commodity b. Need for a commodity c. Quantity of a commodity Demanded at a

certain price during any a particular period of time

d. Quantity demanded of the commodity

Q11. All but one of the following are assumed to remain the same while drawing an individual demand curve for a commodity Which one of it ?

a. The Preference of an individual b. His Monetary income c. Price d. Price of related goods

Q12. Which of the following pair of goods is an example of substitutes goods ?

a . Tea and sugar b . Pen and ink c . Shirt and trousersd. None of the above

Q13. If a people’s Income increase the quantity demanded of a good decreases ,the good is called ?

a . Substitute Goodsb . Normal Goods c. inferior Goods d . Complement Goods

Q14.The prices of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are?

a. Normal goodsb. Complementsc. Substitutesd. Inferior goods

Q15. Potato chips and popcorn are substitutes a rise in the price of potato chips will______ the demand for popcorn and quantity of popcorn will______.

A. increase ;increaseB. Increase ;decreaseC. Decrease ;decreaseD. decrease ;increase

Q16. If the prices of orange juice increases ,the demand for apple juice will_______.

A. IncreaseB. DecreaseC. Remain the sameD. Become negative

Q17. When total demand for a commodity whose price has fallen increase ,it is due to

a. Income effectb. Substitution effectc. Complementary effectd. Price effect

Q18. With an increase in the price of diamond ,the quantity demanded also increases. This is because it is a

a. Substitute goodb. Complementary goodc. Conspicuous goodd. None of the above

Q19. In economics, when demand for a commodity increases with a fall in its price it is known as

a. Contraction of demandb. Increase in demandc. No change in demandd. None of the above

Q20.Identify the factor which generally keep the price elasticity of demand for a good law

a. Variety of uses for that goodb. Its low pricec. Close substitutes for the goodd. High proportion of the consumer’s

income spent on it.

Q21.In the case of an inferior good, the income elasticity of demand is

a. Positiveb. Zeroc. Negatived. Infinite

Q22. If a demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumer of the good to

a. Remain the sameb. Increasec. Decreased. None of these

Q23.If regardless of change in its price, the quantity demand for a good remains unchanged, then the demand curve for the good will be

a. Horizontalb. Verticalc. Positive sloped. Negative slope

Q24. Compared to the lower-right portion, the upper-left portion of most demand curves tend to be

a.more inelasticb.more elasticc.unit elasticd.perfectly inelastic

Q 25.You are the sales manager for a pizza company and have been informed that the price elasticity of demand for your most popular pizza is greater than one .To increase total revenues, you should

a.increase the price of the pizza. b.decrease the price of the pizza. c.hold pizza prices constant. d.decrease demand for your pizza.

Q26.Selling Sweets and Namkeens at higher price in Punjab and at lower price in Bikaner and other parts of Rajasthan is an example of ?

a. Price sensitisationb. price discriminationc. price reductiond. price harmonisation

Q27.Suppose the price of Pepsi increases, we will expect the demand curve of coca cola to

a. Shift towards leftb. Shift towards rightc. Infinity shift towards left and than to rightd. Remain at the same level

Q28.All the following are determinates of demand except

a. Income b. Price of related goodsc. Tastes and preferencesd. Quantity supplied

Q29.If the price of Pepsi decreases relative to the price of coke and 7-up the demand for

a. Coke will decreaseb. 7-up will decreasec. Coke and 7-up will increased. Coke and 7-up will decrease

Q30.If a good is luxury, its income elasticity of demand is

a. Positive and less than 1b. Negative but greater than -1c. Positive and greater than 1d. Zero

Q31.The price of hot dog increases by 22% and the quantity of hot dog demanded falls by 25%. This indicates that demand for hot dog is

a. Elastic b. Inelasticc. Unitary elastic d. Perfectly elastic

Q32.Given the following four possibilities, which one results in an increase in total consumer expenditure

a. Demand is unitary elastic and price fallsb. Demand is elastic and price risesc. Demand is inelastic and price fallsd. Demand is inelastic and price rises

Q33.If elasticity demand is inelastic and elasticity charges increases, which of the following is likely to occur

a. Quantity demanded will fall by a relatively large amount

b. Quantity demanded will fall by a relatively small amount

c. Quantity demanded will rise in the short run but rise in the long run

Q34. Suppose the demand for meals at a medium priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively

a. Large fall in quantity demandedb. Large fall in demandc. Small fall in quantity demanded d. Small fall in demand

Q35.A decrease in price will result in an increase in total revenue if

a. The percentage change in quantity demanded < the percentage change in price

b. The percentage change in quantity demanded > the percentage change in price

c. Demand is elasticd. Demand is inelastic

Q36.Demand for a good will tend to be more elastic if it exhibits which of the following characteristics

a. It represents a small part of the consumer’s income

b. The good has many substitutes availablec. It is a necessity( as opposed to a luxury)d. There is little time for the consumer to

adjust to the price change

Q37.Demand for a good will tend to be more inelastic if it exhibits which of the following characteristics

a. The good has many substitutesb. The good is a luxuryc. The good is a small part of the consumer’s

incomed. There is a great deal of time for the

consumer to adjust to change in the prices

Q38. If the quantity demanded of mutton increases by 5% when the price of chicken increases by 20%. The cross price elasticity of demand between mutton and chicken is

a. -0.25b. 0.25c. -4d. 4

Q39.The demand for Nike basketball shoes is more price-elastic than the demand for basketball shoes as a whole. This is best explained by the fact that

a.Nike basketball shoes are a luxury good, not a necessity.b.Nike basketball shoes are the best made and are widely advertised. c.There are more complements for Nike basketball shoes than for basketball shoes as a whole. d.There are more substitutes for Nike basketball shoes than for basketball shoes as a whole.

Q40. Suppose the price of movies seen at a theater rises from rupees 120 per person to rupees 200 per person. The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 per person. What is the price elasticity of demand for movie

a. 0.5b. 0.8c. 1.0d. 1.2

Q41.Suppose a department store has a sale on its silverware. If the price of a plate setting is reduce from rupee 300 to rupee 200 and the quantity demanded increases from 3000 plates setting to 5000 plates setting. What is the price elasticity of demand for silverware

a. 0.8b. 1.0c. 1.50d. 1.25

Q42.A store has a special offer on CDs. It reduces their price from rupees 150 to rupees 100. suppose the store manager observes that the quantity demanded increases from 700 CDs to 1300 CDs. What is the price elasticity of demand for CDs

a. 0.8b. 1.0c. 1.25d. 1.50

Q43.If the local pizzeria raises the price of a medium pizza from rupees 60 to rupees 100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demanded for pizzas is

a. .67b. 1.5c. 2.0d. 3.0

Q44.Which is characteristic of a good whose demand is inelastic?

a. There are a large number of good substitutes for the good for consumers. b. The buyer spends a small percentage of total income on the good. c. The good s regarded by consumers as a luxury. d. The period of time for which demand is given is relatively long.

Q45.Most goods can be classified as normal goods rather than inferior goods. The definition of a normal good means that

a. the percentage change in consumer income is greater that the percentage change in price of a normal good. b. the percentage change in quantity demanded of the normal good Is greater than the percentage change in consumer income. c.as consumer income increases, consumer purchases of a normal good increase. d. the income elasticity of demand is negative.

Q 46.In what type of products is elasticity lowest ?

a. day to day use products

b. luxury goods

c. medicines

d. perishables

Q 47.In what type of products is elasticity highest ?

a. day to day use products

b. luxury goods

c. medicines

d. perishables

Q48.When two or more commodity are demanded for a common purpose then it is called_______

a. Derived demandb. Collective demand c. Joint demandd. Cross demand

Q49.From a time perspective, the demand for most products is

a. less elastic in the short run and unit-elastic in the long run. b. less elastic in the long run and unit-elastic in the short run. c. more elastic in the short run than in the long run. d. more elastic in the long run than in the short run.

Q50.Below the following is less elastic demand:

a. Ed=1b. Ed>1c. Ed<1d. Ed=0

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