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WorksheetsFoundation Economics Chap 2 - Part 17
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
In case the consumer expects a steep rise in price of potatoes in future, his current demand for it will…
a)
Remain same
b)
fall
c)
Rise in demand for both
d)
none
2.
Government increases the rate of indirect taxes on goods and services the demand for then will or... in general
a)
Rises
b)
Falls
c)
Remain same
d)
Tax has nothing to do with the demand
3.
If the government reduces the tax on any product, the demand for the product.... In the short run
a)
Rises
b)
Falls
c)
Remain same
d)
Tax has nothing to do with the demand
4.
If the demand for Petrol remains unchanged with rise in its price, it means petrol is ...
a)
Normal good
b)
Necessity good
c)
Luxury good
d)
Inferior good
5.
If quality of good "X" is plotted against the price of a substitute good "y" the demand curve will be
a)
Vertical straight line
b)
Positively sloped
c)
Horizontal straight line
d)
Negatively sloped
6.
When the quantity of good that a buyer demands rises when there is growth of purchase by other individuals, Such an effect is called...
a)
Bandwagon effect
b)
Snob effect
c)
Veblen effect
d)
None of the above
7.
In case of normal goods the income effect is
a)
Positive for normal goods
b)
Always positive
c)
Negative for normal goods
d)
Always negative
8.
Income effect on demand of a good
a)
Positive for normal goods
b)
Always positive
c)
Negative for normal goods
d)
Always negative
9.
Law of demand is explained by
a)
Cardinal approach
b)
Ordinal approach
c)
Both a and b
d)
Neither a and b
10.
Law of demand refers to functional relationship between
a)
Price and supply
b)
Price and cost
c)
Price and income
d)
Price and Demand
11.
The term Ceteris paribus in the law of demand means
a)
All factors except one of remained constant
b)
All factors cement constant
c)
All factors are variable
d)
None of the above
12.
Which of the following is variable and influencing character in the law of demand
a)
Consumer income
b)
Consumer taste and preferences
c)
Price related to related goods
d)
Price of good
13.
Suppress other things being equal in the law of demand means
a)
Income of the consumer remains unchanged
b)
Price of related goods remains unchanged
c)
Taste and preferences of consumer remains unchanged
d)
All of the above
14.
The total effect of price change of a good is
a)
Substitution effect + income effect
b)
Substitution Effect + price effect
c)
Substitution + demonstration effect
d)
Demonstration effect + Veblen effect
15.
.... Refers to the effect of change in the price of a product on consumer purchasing power
a)
Real income effect
b)
Substitution effect
c)
Consumer surplus
d)
None of the above
16.
When the Price of Thumps-up fall, other things being constant, buyers substitute thumps -up for coco cola this is called
a)
Price effect
b)
Substitution effect
c)
Income effect
d)
Veblen effect
17.
.... Refers to buyer reaction to change in the relative price of two products, keeping the total utility constant
a)
Consumer surplus
b)
Income effect
c)
Substitution effect
d)
None
18.
The law of demand can be explained by...
a)
Law of diminishing marginal utility
b)
Indifference curve
c)
Both a and B
d)
Neither a and B
19.
Downward Slope of the demand curve shows ...
a)
positive relationship between price and quantity demanded
b)
Inverse relationship between quantity demanded
c)
No relationship between price and quantity demanded
d)
None of the above
20.
Law of Demand fails in the case of ...
a)
Normal goods
b)
Giffen goods
c)
Inferior goods
d)
Both B and C
21.
Giffen good one which a small change in price results in...
a)
Zero income effect outweighed by positive substitution effect
b)
Zero income effect be equal to zero substitution effect
c)
Negative income effect weighed by positive substitution effect
d)
none
22.
Analysis of relationship between demand of a commodity and price of a commodity is...
a)
Price demand analysis
b)
Income demand analysis
c)
Cross demand analysis
d)
Market demand analysis
23.
.... Observed that when the price of inferior good fall the demand for such good also fall
a)
Adam Smith
b)
Alfred Marshall
c)
Ragnar frisch
d)
Robert Giffen
24.
Tendency of low income group to imitate consumption pattern of high income group is also known as .... effect
a)
Demonstration
b)
Copy
c)
Prestige
d)
Veblen
25.
when Price changes and proposed change in market demand is more than proportionate change in individual demand implies that the market demand curve is.... That the individual demand curve
a)
Steeper
b)
Flatter
c)
Vertical
d)
None
26.
A Positively sloped demand curve implies
a)
Violation of law of demand
b)
Giffen Good
c)
Income effect is negative and greater than substitution effect
d)
All of the above
27.
Increase in consumer income will increase demand for... but decrease demand for...
a)
Substitute goods, inferior goods
b)
Normal good, inferior good
c)
Substitute good, complementary good
d)
Inferior good, normal good
28.
Explain the normal shape of demand curve for Diamond through the doctrine of Conspicuous consumption
a)
Thorstein Veblen
b)
Robert Giffen
c)
David Ricardo
d)
Alfred Marshall
29.
Elasticity of demand is defined as the responsiveness of the quantity demanded of a good to change in
a)
Price of commodity
b)
Price of related goods
c)
Income of consumer
d)
All of the above
30.
Concept of elasticity of demand when ever referred unless otherwise specified always means
a)
Price elasticity of demand
b)
Income elasticity of demand
c)
Cross elasticity of demand
d)
All of the above
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