Economics MCQ Practice

An increase in consumer income would lead to:

• A. An upward shift in the demand curve.

• B. A downward shift in the demand curve.

• C. A movement along the demand curve.

• D. No change in the demand curve.

Normally, the demand curve will have ________________ shape.

• A. a downward sloping

• B. an upward sloping

• C. a vertical

• D. a horizontal

If the price of a product increases, what happens to the quantity supplied?

• A. It increases

• B. It decreases

• C. It remains unchanged

• D. It depends on other factors

If the price of a product decreases, what happens to the quantity demanded?

• A. It increases

• B. It decreases

• C. It remains unchanged

• D. It depends on other factors

Which of the following factors does NOT influence supply?

• A. Input prices

• B. Technological advancements

• C. Government regulations

• D. Consumer preferences

What is the law of supply?

• A. As prices increase, quantity supplied increases.

• B. As prices increase, quantity supplied decreases.

• C. As prices decrease, quantity supplied increases.

• D. As prices decrease, quantity supplied decreases.

Which of the following factors does NOT influence demand?

• A. Consumer income

• B. Price of related goods

• C. Tastes and preferences

• D. Cost of production

What is the law of demand?

• A. As prices increase, quantity demanded increases.

• B. As prices increase, quantity demanded decreases.

• C. As prices decrease, quantity demanded decreases.

• D. As prices decrease, quantity demanded decreases.

The government's intervention in a mixed economy is primarily aimed at:

• A. Achieving income equality among the population.

• B. Promoting economic growth and development.

• C. Eliminating private ownership of resources.

• D. Maximizing consumer satisfaction and utility.

Mixed economies aim to combine the advantages of:

• A. Market economies and traditional economies.

• B. Command economies and traditional economies.

• C. Market economies and command economies.

• D. Subsistence economies and market economies.