Practice Test

Q1) ________ refers to how much quantity of a product or a sevice is desired by the buyers. Show Answer

Q2) The ______ is the amount of a product people are willing to buy at a certain price. Show Answer

Q3) Which of the following things is/are essential for a desire for a commodity to become effective demand? Show Answer

Q4) As per ________, " A fall in the price of a commodity causes a household to buy more of that commodity and less of the other commodities which compete with it, while rise in price causes the household to buy less of this commodity and more competing commodities." Show Answer

Q5) According to law of demand, ________, if the price of a the commodity falls, the quantity demanded of it will rise and the price of a commodity rises, its quantity demand will decline Show Answer

Q6) As per law of demand, other things being equal, if the price of a commodity _______, the quantity demanded of it will rise. Show Answer

Q7) According to law of demand, other things being equal, if the price of a commodity rises, its quantity demanded will _______ Show Answer

Q8) The law of demand assumes that ________ remain the same in a given period. Show Answer

Q9) The law of demand , assuming other things to remain constant, establishes the relationship between:_______ Show Answer

Q10) The law of demand assumes that ________ remain the same in a given period. Show Answer

Q11) As per the law of demand, there is ______ between price and quantity demanded, other things being same. Show Answer

Q12) Ceteris Paribus means ________ Show Answer

Q13) Demand for goods by an individual or the markets as a whole conventionally expressed in the form of:___________ Show Answer

Q14) A _______ of an individual buyer is an algebraic form of expressing his demand behaviour Show Answer

Q15) A ______ is a tabular form of describing the relationship between quantities demanded of good in response to its price per unit, while all non-price determining variables remain unchanged Show Answer

Q16) ________ is a grahical presentation of the demand schedule Show Answer

Q17) A demand curve ______ Show Answer

Q18) In economics_________ of a good is its expected capacity to satisfy a human want. Show Answer

Q19) Which of the following factors or principles is / are responsible for the operation of law of demand, or for the downward slope of the demand curves ? Show Answer

Q20) Which of the following factors or principles is / are responsible for the operation of law of demand, or for the downward slope of the demand curves ? Show Answer

Q21) Which of the following factors or principles is / are responsible for the operation of law of demand, or for the downward slope of the demand curves ? Show Answer

Q22) If the demand changes due to change in price, it is called________ Show Answer

Q23) if the demand changes due to change in other things, it is called as __________ Show Answer

Q24) When a consumer moves from one point to another on the same demand curve it is called as __________ Show Answer

Q25) When the entire demand curve shifts its position it is called as __________ Show Answer

Q26) If due to increase in 'price' , quantity demanded goes downward it is known as _______ Show Answer

Q27) If due to decrease in 'price' , quantity demanded goes upward it is known as _______ Show Answer

Q28) If due to change in other things, quantity demanded goes upward it is known as _________ Show Answer

Q29) If due to change in other things, quantity demanded goes downward it is known as _________ Show Answer

Q30) Contraction of demand is the result of: _____________ Show Answer

Q31) There is no exception to law of demand Show Answer

Q32) Which of the following is/ are exception to the law of demand? Show Answer

Q33) Goods which are consumed by weaker section of society are known as __________ Show Answer

Q34) Goods which are used by rich people to show their status are known as ________ Show Answer

Q35) Some special varities of inferior goods are termed as ______________ Show Answer

Q36) Which of the following is giffen goods? Show Answer

Q37) Which of the following is not Giffen goods? Show Answer

Q38) An increase in consumer income, will increase demand for a _________ but decrease demand for a _________ Show Answer

Q39) The first determinant of the demand for a goods is___________ Show Answer

Q40) Which of the following can be treated as determinant of demand? Show Answer

Q41) All of the following are determinants of demand except;________ Show Answer

Q42) Which of the following can be treated as determinant of demand? Show Answer

Q43) _______and ________do not directly affect the demand cruve. Show Answer

Q44) _________are those goods which are consumed simultaneously like car and petrol. Show Answer

Q45) ________are those goods that can be substituted for each other like coffee and tea. Show Answer

Q46) Ball-pen and refill are example of _______ Show Answer

Q47) Motor cycle and scooter are example of ______ Show Answer

Q48) Car and petrol are example of _______ Show Answer

Q49) Which of the following Pairs of goods is an example of substitutes Show Answer

Q50) If the price of ipods increases and as a consequence, the demand for MP3s increases, then ipods and MP3s are________ Show Answer

Q51) The _________ refers to the amount of a certain good producers are willing to supply when receiving a certain price. Show Answer

Q52) According to _______, supply always means a schedule of possible prices and amounts that would be sold at each price. Show Answer

Q53) __________ states: " other things being equal, the quantity of any commodity that firms will produce and offer for sale is positively related to commoditys own price, rising when the price rises and falling when the price falls." Show Answer

Q54) The law of supply states that a firm will produce and offer to sell greater quantity of a product or service as the price of that product or service rises, other things being equal. Show Answer

Q55) There is ________between price and quantity supplied. Show Answer

Q56) Suppy for goods by an individual or the market as a whole is conventionally expressed in the form of:______________ Show Answer

Q57) A ___________ of an individual supplier is an algebraic form of expressing his behaviour with regard to what he offers in the market at prevailing prices Show Answer

Q58) A________is a tabular statement that shows different quantity or service that are offered by the firm or producer in the market for sale at different prices at a given time. Show Answer

Q59) The individual________ is a graphical representation of the information given in individual supply schedule. Show Answer

Q60) ________relates to the supply of a good or service by one firm at different prices ,other things remains constant or equal. Show Answer

Q61) _______is the sum of the amount of good supplied for sale by all the firms or producers in the market at different prices during a given time. Show Answer

Q62) The supply curve slopes__________ Show Answer

Q63) Law of supply states that there exist _________ between the price of a product and its quantity supplied , ceteris paribus. Show Answer

Q64) If the supply changes due to change in price,it is called ________ Show Answer

Q65) If the supply changes due to change in other things ( determinants), it is called as __________ Show Answer

Q66) When a consumer moves from one point to another on the same supply curve it is called as __________ Show Answer

Q67) When the entire supply curve shifts its position it is called as ________ Show Answer

Q68) If due to increase in 'Price', Quantity supplied goes upward it is known as ____________ Show Answer

Q69) If due to decrease in Price, quantity supplied goes downward it is known as _________ Show Answer

Q70) IF due to changein other things quantity supplied goes upward it is known as ______ Show Answer

Q71) If due to chage in other things (determinanants) quantity supplied goes downwards it is known as __________ Show Answer

Q72) If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in ___________ Show Answer

Q73) Which of the following can be treated as determinant of Supply? Show Answer

Q74) Which of the following can be treated as determinants of supply? Show Answer

Q75) Which of the following can be treated as determinants of supply? Show Answer

Q76) In economics equilibrium is a situation in which _________ Show Answer

Q77) In economics, equilibrium is a situation in which _______ Show Answer

Q78) The equilibrium is the state when _______ Show Answer

Q79) If the graphical presentation s made for demand and supply curve equilibrium is attained when________ Show Answer

Q80) ____________ is defined as the responsiveness of the quantity demanded of a good to the changes in one of the variables on which demand depends or we can say that it is the percentage change in quantity demanded divided by the percentage change in one of the variables on which demand depends Show Answer

Q81) __________ of demand is the degree of responsiveneess of the demand for a commodity to a change in its price Show Answer

Q82) The formula for calculating price elasticity of demand is _____________ Show Answer

Q83) When a very insignificant change in price leads to an infinite change in quantity demanded it is called as _________ Show Answer

Q84) Quantity demanded does not change with the change in price is called as ________ Show Answer

Q85) When a small change in price causes a greater change in the quantity demanded is called as _______ Show Answer

Q86) Where a greater change in price leads to a smaller change in quantity demanded, it is called as _________ Show Answer

Q87) When a change in price results in exaclty the same percentage change in the quantity demanded of a commodity, it is called as _____________ Show Answer

Q88) Perfectly elastic demand means: _______ Show Answer

Q89) Perfectly inelastic demand means: _________ Show Answer

Q90) Relatively elastic demand means: ________ Show Answer

Q91) Relatively inelastic demand means: ________ Show Answer

Q92) Unitary elastic demand means: ______ Show Answer

Q93) Price elasticity of demand can be measured through: _________ Show Answer

Q94) According to percentage method or arithmetic method of elasticity of demand, if the percentage change in quantity demanded is greater than the percentage change in price, the elasticity will be _____________ Show Answer

Q95) According to percentage method or arithmetic method of elasticity of demand, if the percentage change in quantity demanded is less than the percentage change in price, the elasticity is said to be ___________ Show Answer

Q96) According to percentage method or arithmetic method of elasticity of demand, if the percentage change in quantity demanded and price is same, the elasticity is said to be _____________ Show Answer

Q97) Total expnditure method was formulated by ___________ Show Answer

Q98) According to total expenditure method of elasticity of demand, if it is found that total expenditure remains the same, elasticity of demand is said to be _______ Show Answer

Q99) According to total expenditure method of elasticity of demand, if total expenditure increases due to increase in price the , elasticity of demand is said to be _______ Show Answer

Q100) According to total expenditure method of elasticity of demand, if total expenditure diminished with the decrease in price , elasticity of demand is said to be _______ Show Answer

Q101) According _____________, elasticity of demand is measured on different points on a straight line demand curve. Show Answer

Q102) According to graphic or point method of elasticity of demand, at mid-point on a straight line demand curve, elasticity will be equal to Show Answer

Q103) According to graphic method or point method of elasticity of demand, at higher points on a straight line demand curve, but to the left ot mid point elasticity will be equal to ________ Show Answer

Q104) According to graphic method or point method of elasticity of demand, at lower points on a straight line demand curve, but to the right to mid point elasticity will be equal to ________ Show Answer

Q105) According to graphic or point method of elasticity of demand the price elasticity of demand at a point on straight line is equal to ________ of the demand curve Show Answer

Q106) Price elasticicty of demand is dependent upon __________ Show Answer

Q107) Price elasticicty of demand is dependent upon __________ Show Answer

Q108) The demand is _________ for moderate priced goods Show Answer

Q109) The demand for very costly and very cheap goods is ____________ Show Answer

Q110) If a good has a close substitutes, the price elasticity of demand for a commodity will be ________ as some other commodities can be used for it Show Answer

Q111) Which of the following has inelastic demand? Show Answer

Q112) Elasticity of demand for a good is not dependent upon the proportion of a consumer's budget spent on it. Show Answer

Q113) If individuals are habituated of some commodities the demand for such commodities will be usually _______ Show Answer

Q114) The demand for necessities is ________ Show Answer

Q115) The demand for comforts and luxuries is _________ Show Answer

Q116) A commdity which has several uses will have an ________ demand such as milk, wood etc. Show Answer

Q117) A commodity having only one use will have _______ demand Show Answer

Q118) Usually the deamnd for commodities, the consumption of which can be postponed has ________ demand as the price rise and is expected to fall again. Show Answer

Q119) The Change in demand of a goods X in response to a change in the price of Goods Y is called ___________ Show Answer

Q120) Cross price elasticity is __________ if the change in the price of goods Y causes a change in quantity demanded of goods X in same direction Show Answer

Q121) Cross price elasticity is __________ if the change in the price of goods Y causes a change in quantity demanded of goods X in opposite direction Show Answer

Q122) Cross price elasticity is __________, if a change in price of Goods Y does not affect the quantity demanded Goods X Show Answer

Q123) in case of ______ cross elasticity is infinite Show Answer

Q124) In case of ______, cross elasticity is positive Show Answer

Q125) in case of ________ cross elasticity is negative Show Answer

Q126) A positive cross elasticity of demand coefficient indicates that _________ Show Answer

Q127) ________ is a degree of responsiveness of quantity demanded of goods to a change in income of consumers Show Answer

Q128) ________ have a positive income elasticity of demand so as consumers income rises demand also increases Show Answer

Q129) _______ have a negative income elastcity of demand falls when income rises Show Answer

Q130) ______ have an income elasticity of demand Ed > 1 Show Answer

Q131) The supply is said to be ________ when a very insignificant changein price leads to an infinite change in quantity supplied Show Answer

Q132) The supply is said to be ________, when a change in price producees no change in quantity supplied of a commodity Show Answer

Q133) The supply is _______ when a small change in price causes a greater change in quantity supplied Show Answer

Q134) The supply is ______ when a greater change in price leads to smaller change in quantity supplied Show Answer

Q135) Perfectly elastic supply means _______ Show Answer

Q136) Perfectly inelastic supply means ________ Show Answer

Q137) Relatively elastic supply means: ________ Show Answer

Q138) Relatively inelastic supply means: ________ Show Answer

Q139) Unitary elastic supply means: ______ Show Answer

Q140) The price of goods X increases by 22% and quantity of goods X demanded falls by 25% this indicates that demand for goods X is Show Answer

Q141) Suppose the price of commodity rises from Rs. 120 to Rs. 200, it is observed that the rise in price causes quantity demanded to fall from 300 to 200. What is the price elasticity of demand for commodity. Show Answer

Q142) If the price of a commodity is reduced from Rs. 300 to Rs. 200 and the quantity demanded increases from 3000 to 5000. what is the price elasticity of demand Show Answer

Q143) A discount store has a special offer on CD's . It reduces their prices from Rs. 150 to Rs. 100 suppose the store manager observes that the quantity demanded increases from 700 CD's to 1300 CD's.What is the price elasticity of demand for CD's Show Answer

Q144) Suppose the consumer income increases from Rs. 30 000 to Rs. 36 000. As a result the consumer increases her purchase of CD's From25 to 30. what is the consumers income elasticity of demand for CD's Show Answer

Q145) the price of commodity decreases from rs. 6 to Rs. 4 and his demand for goods increases from 10 units to 15 units find the co-efficent of price elasticity of demand: Show Answer

Q146) a consumer buys 50 units of commodity @ Rs. 4 per unit. When its price falls by 25 % it demand rises to 100 units find out price elasticity of demand Show Answer

Q147) When the price of the commodity X is Rs. 20 per unit it's quantity demanded is 50 units, and when the price goes upto Rs. 40 per unit its quantity demanded falls to 25 units. Find the price elasticy coefficeint and give its interpretration Show Answer

Q148) A consumer spends Rs. 80 on a commodity when its price is Re. 1 per unit and spend Rs. 96 when the price is Rs. 2 per unit. Calculate the price elasticity coefficient of demand for commodity. Show Answer

Q149) Consumer X buys 100 units of commodity at Rs. 8 per unit. When its price falls by 50 %, the demand rises to 200 units. Find out the price elasticity of demand for this product. Show Answer

Q150) When the income of the consumer is Rs.40, his demand for a particular commodity is 8 units. When his income goes up to Rs. 50 his demand for that commodity becomes 10 units calculate his income elasticity of demand for the commodity. Show Answer

Q151) If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross price elasticity of demand between beef and chicken Show Answer

Q152) Calculate cross elasticity of demand when demand for X increase from 10 units to 15 units and price of Y increase from Rs. 3 to Rs. 6 per unit Show Answer

Q153) If the price elasticity of demand for a goods is 0.70, the demand for the goods can be described as : _______ Show Answer

Q154) Price elasticicty of demand is dependent upon __________
Show Answer

Q155) Cross price elasticity is _________ if the slighest change in the price of Goods Y causes a substantial change in the quantity demanded of Goods X.
Show Answer