Practice Economics MCQ Quiz

The law of Demand States that?

• As price increases quantity demanded decreases

• As price increases quantity demanded increases

• Price has no effect on quantity demanded

• As price increases quantity supplied decreases

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Economics

The law of supply states that?

• As price increases quantity supplied decreased

• As price increases quantity supplied increases

• Price has no effect on quantity supplied

• As price increases quantity demanded decreases

Tags

Economcis

If quantity demanded is higher than quantity supplied, below the equilibrium point, the situation is calles?

• Excess Supply/Surplus

• Excess Demand/Shortage

• Excess Demand/Surplus

• Excess Supply/Shortage

Tags

Economics

When price elasticity of demand is 0, it is called?

• Elastic

• Inelastic

• Perfectly Elastic

• Perfectly Inelastic

Tags

Economics

Which of the following is an example of a luxury good?

• Books

• Medicine

• Cars

• Toothpastes

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Economics

Value Added Tax (VAT) is a type of?

• Direct Tax

• Indirect Tax

• Subsidy

• Government Permit

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Economics

There is a 10% increase in price leading to a 9% increase in quantity supplied. What is the Price Elasticity of Supply and is it elastic or inelastic?

• 0.9, Elastic

• 1.11, Elastic

• 0.9, Inelastic

• 1.11, Inelastic

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Economics

An individual or customer cannot be prevented from the consumption of a public good. This phenomenon is known as?

• Non Rivalry

• Non Excludability

• Free Rider Problem

• Profit Maximization

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Economics

Which economic system has the least Government control?

• Command Economy

• Planned Economy

• Free Market Economy

• Mixed Economy

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Economics

If Price Elasticity of Demand is Inelastic, to get higher revenue, it is better to?

• Decrease Price

• Increase Price

• Keep Prices Fixed

• Stop selling the product

Tags

Economics