WorksheetsFoundation Economics Chap 2 - Part 4
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
When the price remains constant and the quantity demanded changes, then the elasticity of demand will be
a)
Vertical to x-axis
b)
horizontal to x-axis
c)
Either a or b
d)
None
2.
Demand of a commodity depends upon:
a)
Price
b)
Income
c)
Price of related products
d)
All of the above
3.
In case of substitue goods, cross elasticity is _______.
a)
Negative
b)
Zero
c)
Positive
d)
None
4.
The prices of a commodity were increased from Rs4 to Rs6. As a result, demand decreases from 15 units to 10 units. What is the price of elasticity?
a)
0.66
b)
0.33
c)
1.06
d)
1.5
5.
Other things remaining constant, if the price of the inferior goods decreases then what will be the effect?
a)
Demand increases
b)
Demand decreases
c)
Quantity Demand increases
d)
Quantity Demand decreases
6.
When the price falls from Rs6 to Rs4 , the demand rises from 10 to 15 units. Calculate Price elasticity of demand.
a)
1.5
b)
3.5
c)
0.5
d)
2
7.
Cross elasticity of perfect substitutes is:
a)
Zero
b)
Negative
c)
One
d)
Infinity
8.
What is Engel's Curve?
a)
Curve showing three demand curve
b)
Named after Ernst Engel
c)
Both a and b
d)
None
9.
A consumer spends Rs80 on purchasing a commodity When its price is Rs1 per unit and spends Rs 96 when the price is Rs 2 per unit. Calculate price elasticity of demand.
a)
0.2
b)
0.3
c)
0.4
d)
0.5
10.
the demand for which type of goods do not decrease with its increase in price
a)
comforts
b)
luxury
c)
necessities
d)
capital goods
11.
increase in price from 4rs to 6 rs then decrease in demand from 15 units to 10 units, what is tge price elasticity
a)
0.66
b)
5
c)
-1.5
d)
2
12.
expansion and contraction in demand are caused by
a)
change in income of buyer
b)
change in taste and preference of buyer
c)
change in price of commodity
d)
change in price of related goods
13.
a fall in price of normal goods leads to
a)
a shift in demand curve
b)
fall in demand
c)
a rise in consumers real income
d)
a fall in consumers real income
14.
a 10% increase in the price of tea results in an 8% increase in the demand for coffee. cross elasticity of demand would be
a)
0.8
b)
1.25
c)
1.5
d)
1.8
15.
when the total expenditure incurred by the consumers on a commodity due to change is its price remains the same then tge elasticity of the demand for commodity will be
a)
zero
b)
one
c)
more than one
d)
less than one
16.
what will be the price elasticity if the original price is 5rs the original quantity is 8 units and the changed price is 6rs and changed unit is 4
a)
2.5
b)
2
c)
1.5
d)
1
17.
the original price of a commodity is 500rs of quantity demanded of that is 20 kgs if the price rises to 750 rs and tge quantity demanded falls to 15 kgs the price elasticity of demand will be
a)
0.25
b)
0.5
c)
1
d)
1.5
18.
the demand for factors of production is
a)
fundamental demand
b)
derived demand
c)
market demand
d)
joint demand
19.
cross elasticity of demand between two perfect substitutes will be
a)
very high
b)
very low
c)
infinity
d)
zero
20.
what is the elasticity between the midpoint and the upper extreme point of a straight line continous demand curve
a)
infinite
b)
zero
c)
greater than one
d)
less than one
21.
the price of a tiffin box is 100 rs per unit and the quantity demanded in the market is 1,25,000 units. company increased the price to 125rs . due to increase in price the quantity demand decreases to 1,00,000 units, what is the price elasticity of demand?
a)
1.25
b)
0.8
c)
1
d)
none of these
22.
the price of a commodity decreases from 10 to 8 and the quantity demanded of ot increases from 25 to 30 units , then the coefficient of price elasticity will be
a)
1
b)
1.5
c)
-1
d)
-1.5
23.
which statement is true about the law of demand
a)
income rises , demand rises
b)
price rises ,demand rises
c)
price falls ,demand falls
d)
price falls , demand rises
24.
Cardinal approach is related to
a)
indifferent curve
b)
marginal utility
c)
law of diminishing return
d)
none
25.
An increase in demand can result from
a)
a decline in market price
b)
an increase in income
c)
a reduction in prices of substitutes
d)
an increase in price of complement
26.
Cross elasticity of perfect substitutes is
a)
zero
b)
negative
c)
one
d)
infinity
27.
Supply is _______________________ concept
a)
flow
b)
stock
c)
flow and stock both
d)
qualitative
28.
For what type of good does demand fall with a rise in income level of households?
a)
inferior good
b)
substitutes
c)
luxuries
d)
necessities
29.
Which economist said that money is a measuring rod of utility
a)
ac pigou
b)
marshall
c)
adam smith
d)
robbins
30.
Elasticity between two point
a)
point elaticity
b)
arc elasticity
c)
cross elasticity
d)
none
100 %
