Indian Economy

Important Concepts in Micro & Macroeconomics

mcq test

If a commodity has more number of substitutes, the demand for this commodity will be

A. more elastic

B. less elastic

C. inelastic

D. perfectly elastic

MCQ -1

Arrow
White Scribbled Underline

B. less elastic

10

09

08

07

06

05

04

03

02

01

A monopolist will be able to maximise his profits when

A. His output is maximum

B. He charges a Higher price

C. His average cost is minimum

D. His marginal cost is equal to the marginal revenue

MCQ -2

Arrow
White Scribbled Underline

D. His marginal cost is equal to the marginal revenue

10

09

08

07

06

05

04

03

02

01

Which of the following items is characterised by the highest income elasticity of demand among others?

A. Car

B. Milk

C. Paddy

D. Tobacco

MCQ -3

Arrow
White Scribbled Underline

A. Car

10

09

08

07

06

05

04

03

02

01

Which among the following is an example of a microeconomic variable?

A. National Income

B. Consumer's Equilibrium

C. Aggregate Supply

D. Employment

MCQ -4

Arrow
White Scribbled Underline

B. Consumer's Equilibrium

10

09

08

07

06

05

04

03

02

01

Which of the following is related to Microeconomics?

A. The size of the national economy

B. Inflation

C. Unemployment

D. Behavior of individual economic units

MCQ -5

Arrow
White Scribbled Underline

D. Behavior of individual economic units

10

09

08

07

06

05

04

03

02

01

What is the demand of a commodity?

A. Need of the commodity

B. Desire for a commodity

C. Quantity of a commodity demanded at a particular time at a particular price

D. Amount of commodity demanded

MCQ -6

Arrow
White Scribbled Underline

C. Quantity of a commodity demanded at a particular time at a particular price

10

09

08

07

06

05

04

03

02

01

Which of the following is correct regarding the law of demand?

A. It is the relationship between Income and the price of the commodity

B. Assumes Income of the customer should not change

C. Assumes the Price of the commodity should not change

D. It is the relationship between Income and Quantity demanded

MCQ -7

Arrow
White Scribbled Underline

D. It is the relationship between Income and Quantity demanded

10

09

08

07

06

05

04

03

02

01

Which among the following is related to the demand curve?

A. Relation between quantity demanded and price of a commodity

B. Relation between supply and demand of a commodity

C. Relation between income of customers and demand of a commodity

D. None of the above

MCQ -8

Arrow
White Scribbled Underline

A. Relation between quantity demanded and price of a commodity

10

09

08

07

06

05

04

03

02

01

What does low price elasticity of demand for a commodity show?

A. Necessity of the good

B. It is a luxury good

C. It doesn't have importance

D. It is an inferior good

MCQ -9

Arrow
White Scribbled Underline

A. Necessity of the good

10

09

08

07

06

05

04

03

02

01

What is perfectly inelastic demand?

A. Demand doesn't change with price

B. Demand change with price

C. Change in demand is equal to price

D. Demand changes infinitely

MCQ -10

Arrow
White Scribbled Underline

A. Demand doesn't change with price

10

09

08

07

06

05

04

03

02

01

next story

next story