Economics Quiz

The largest proportion of national income comes from .......

• Private sector

• Local sector

• Public sector

• None of the above

Indicate the fundamental economic activities of an economy.

• Production and Distribution

• Production and Exchange

• Production and Consumption

• Production and Marketing

In economics, desire backed by purchasing power is known as

• Supply

• Scarcity

• Demand

• Consumption

Higher the price of certain luxurious articles, higher will be the demand, this concept is called

• Giffen effects

• Veblen effects

• Demonstration effects

• Both b & c above

In the case of perfect elasticity, the demand curve is

• Vertical

• Horizontal

• Flat

• Steep

______________ demand forecasting is related to the business conditions prevailing in the economy as a whole

• Macro Level

• Industry Level

• Firm Level

• None of These

Perfect Competition is characterized by

• Large Number of Buyer and Seller

• Heterogeneous Product

• Free Entry and Exit

• Both A and C

• Both B and C

Purposes of Short term Demand forecasting doesn’t includes;

View answer

• 1. Making a suitable production policy

• 1. To reduce the cost of purchasing raw materials and to control inventory.

• 1. Deciding suitable price policy

• 1. Planning of a new unit or expansion of existing unit

The proportionate change in the quantity demanded of a commodity in response to change in the price of another related commodity is called

• Price Elasticity of Demand

• Income Elasticity of Demand

• Cross Elasticity of Demand

Psychological pricing is also called as;

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