SS 2 ECONOMMICS

The following question required to answers

(A) What is the law of demand?

A

As the price of a good or service increases, the quantity demanded of that good or service increases.

B

As the price of a good or service decreases, the quantity demanded of that good or service decreases.

C

As the price of a good or service increases, the quantity supplied of that good or service increases.

 

(B) Which of the following concepts is true?

1. a. The ability to satisfy the human wants in a good or service is called its satisfaction

2. b. The ability to satisfy the human wants in a good or service is called its productivity

3. c. The ability to satisfy the human wants in a good or service is called its profitability

4. d. The ability to satisfy the human wants in a good or service is called its utility

(a)  

What is the law of supply?

A

As the price of a good or service increases, the quantity demanded of that good or service increases.

B

As the price of a good or service decreases, the quantity demanded of that good or service decreases.

C

As the price of a good or service increases, the quantity supplied of that good or service increases.

1. (B) Which of the following statements is true about the law of equi-marginal utility?

   1. a. The law of equi-marginal utility is known as the law of decreasing utility

   2. b. The law of equi-marginal utility is known as the law of increasing utility

   3. c. The law of equi-marginal utility is known as the law of substitution

   4. d. The law of equi-marginal utility is known as the law of contribution

(a)  

What happens to the quantity demanded when the price of a good increases?

A

 It decreases

 

B

It increases

C

It remains the same

1. (B) Which of the following statements about the addition of utilities is correct?

   1. a. The addition of utility that is obtained from all the units of a good or service is called the total utility

   2. b. The addition of utility that is obtained from all the units of a good or service is called the additional utility

   3. c. The addition of utility that is obtained from all the units of a good or service is called the marginal utility

   4. d. The addition of utility that is obtained from all the units of a good or service is called the maximum satisfaction

(a)  

What happens to the quantity supplied when the price of a good decrease?

A

It increases

B

It decreases

C

It remains the same

 

1. (B) Which of the following statements is true?

   1. a. The capability of any commodity to satisfy human wants is known as utility

   2. b. The capability of any commodity to satisfy human wants is known as taste

   3. c. The capability of any commodity to satisfy human wants is known as consumption

   4. d. The capability of any commodity to satisfy human wants is known as quality

(a)  

What happens to the equilibrium price and quantity when demand and supply both increase?

A

The equilibrium price increases and the equilibrium quantity decreases.

 

B

The equilibrium price increases and the equilibrium quantity increases.

C

The equilibrium price decreases and the equilibrium quantity increases.

 

1. (B) Which of the following about the relationship between marginal utility and price is correct?

   1. a. The marginal utility of a commodity or service must be equal to its price to ensure maximum satisfaction of the consumer

   2. b. The marginal utility of a commodity or service must be greater than its price to ensure maximum satisfaction of the consumer

   3. c. The marginal utility of a commodity or service must be lesser than its price to ensure maximum satisfaction of the consumer

   4. d. There is no relationship between the marginal utility of a commodity or service and its price

(a)  

What is the law of demand based on?

(a)

The assumption that as the price of a good or service increases, consumers will substitute it for a cheaper alternative or reduce their consumption, and vice versa.

 (b)

The process of which price of a good or service increases, consumers will substitute it for a cheaper alternative or increase their price too, and vice versa.

(c)

Is the process by which a product has much demand then the price of a good or service increases, consumers will substitute it for a cheaper alternative or reduce their consumption, and vice versa.

 

(B) Which of the following is true about the relationship between total utility and marginal utility?

1. a. The total utility of a product or service is maximum when the marginal utility is negative

2. b. The total utility of a product or service decreases when the marginal utility is negative

3. c. The total utility of a product or service increases at a decreasing rate when the marginal utility is negative

4. d. None of the above

(a)  

What is the law of supply based on?

 

(a)

The assumption that as the price of a good or service increases, producers will be willing to supply more of it to the market to earn more profits, and vice versa

What is the law of supply based on?

 

(b)

The assumption that as the price of a good or service increases, the consumers will increase to make the producers earn more profit , and vice versa

What is the law of supply based on?

 

(c)

The assumption that as the price of a good or service increases, producers will be willing to supply little of it to the market which causes loss of consumers , and vice versa

1. (B) Elasticity of demand is a (a)   .

   1. Qualitative statement

   2. Quantitative statement

   3. Both a and b are correct

   4. Both a and b are incorrect

1. Which of the following are characteristics of a good measure of dispersion?

   1. It should be easy to calculate

   2. It should be based on all the observations within a series

   3. It should not be affected by the fluctuations within the sampling

   4. All of the above

2. (B)When the price of coffee rises, the demand for tea (a)   .

   1. a. Falls

   2. b. Rises

   3. c. Stays the same

   4. d. None of the above

1. Which of the following are methods under measures of dispersion?

   1. Standard deviation

   2. Mean deviation

   3. Range

   4. All of the above

(a)  

1. If all the observations within a series are multiplied by five, then (a)   .

   1. The new standard deviation would be decreased by five

   2. The new standard deviation would be increased by five

   3. The new standard deviation would be half of the previous standard deviation

   4. The new standard deviation would be multiplied by five