Practice Test

Q1) Demand is a _______ concept. Show Answer

Q2) Demand varies ________ with price. Show Answer

Q3) Law of demand states ________ relation between demand and price. Show Answer

Q4) The sum of all individual demand constitutes __________ demand. Show Answer

Q5) A normal demand curve has a _________ slope. Show Answer

Q6) An exceptional demand curve slopes ________ from left to right. Show Answer

Q7) A rise in demand followed by a fall in price is called ________ in demand. Show Answer

Q8) A shift in demand curve to the right shows more purchase at same price is ______ in demand. Show Answer

Q9) A fall in quantity demanded only due to a rise in price of the product is ______ in demand. Show Answer

Q10) A shift in demand curve to left indicates less purchase at same price is _________ demand. Show Answer

Q11) __________ goods are paradoxical to the law of Demand. Show Answer

Q12) Other things remaining constant, when price of a product increases, the demand _____. Show Answer

Q13) Perfectly elastic demand curve is parallel to _________ as a horizontal straight line. Show Answer

Q14) When elasticity of demand is perfectly inelastic, the demand curve is parallel to __________ axis as vertical line. Show Answer

Q15) Extension and contraction in demand is called as _________ in demand. Show Answer

Q16) Situation when demand becomes more or less due to other factors than price is ______ in demand. Show Answer

Q17) Incase of an inferior good, when price falls then demand ________. Show Answer

Q18) Incase of normal/general goods, when the price falls then its demand __________. Show Answer

Q19) If a commodity is wanted for several uses, it has ________ demand. Show Answer

Q20) The complementary goods have _______ demand. Show Answer

Q21) The relationship between price and demand is _________. Show Answer

Q22) An abnormal demand curve has _______ slope. Show Answer

Q23) ________ goods are demanded at any price. Show Answer

Q24) Giffen goods are ________ goods. Show Answer

Q25) Price and demand are _______ related. Show Answer

Q26) A downward movement on the given demand curve is called ________ in demand. Show Answer

Q27) Complementary goods have _______ demand. Show Answer

Q28) All capital goods have _______ demand. Show Answer

Q29) Consumption goods have _______ demand. Show Answer

Q30) Market demand is more important from the ________ point of view. Show Answer

Q31) A shift in demand curve to the right means ______ in demand. Show Answer

Q32) _________ is desire backed by ability and willigness to purchase. Show Answer

Q33) If the price of good is expected to rise further, the demand for it will ________. Show Answer

Q34) If the price of the inferior goods falls, the demand for them will ________. Show Answer

Q35) When more quantity is demanded at the same price, it is called as _______ in demand. Show Answer

Q36) Changes in tastes and fashion may bring about _______ in demand. Show Answer

Q37) The demand for a commodity having many substitutes is _______. Show Answer

Q38) _______ is graphical presentation of demand schedule. Show Answer

Q39) Demand for labour is _______ demand. Show Answer

Q40) The demand for car and petrol is ______. Show Answer

Q41) ______ is related to price. Show Answer

Q42) Increase in demand is shown by the shift of the demand curve to the ________. Show Answer

Q43) Demand for goods which has more than one use is called _______ demand. Show Answer

Q44) When less is purchased at the same price, it is callled______ in demand. Show Answer

Q45) Demand for diamond goes up with the ______ in price. Show Answer

Q46) When price rises, demand_______. Show Answer

Q47) Graphical representaion of the demand schedule is called_______. Show Answer

Q48) Sum total of individual demand constitutes _______ demand. Show Answer

Q49) Speculation is ______ to the law of demand. Show Answer

Q50) Introduction of new taxes leads to _______ in demand. Show Answer

Q51) Advertisements have ________ effect on demand. Show Answer

Q52) When demand changes due to change in the determinants of demand, it is called an ________ in demand. Show Answer

Q53) When income rises, demand _________. Show Answer

Q54) Demand for several consumers is called ______ demand. Show Answer

Q55) The law of Demand states _______ relation between demand and price. Show Answer

Q56) The higher the utility the _______ is the demand for a commodity. Show Answer

Q57) Individual demand is _______ in quantity. Show Answer

Q58) Market demand is ________ in quantity. Show Answer

Q59) Goods which gives an exclusive status and enables them to show off wealth in the society is called_______ goods. Show Answer

Q60) Normal demand curve shows _______ relationship between price and demand. Show Answer

Q61) Market demand depends upon ________. Show Answer

Q62) Giffen's goods are _______. Show Answer

Q63) Other things being equal when price falls demand _______. Show Answer

Q64) Demand curve________. Show Answer

Q65) The demand of all consumers is _______ demand. Show Answer

Q66) Which is not an example for giffen goods in India? Show Answer

Q67) Ink and pen has _______ demand. Show Answer

Q68) The demand of consumer goods is _____ demand. Show Answer

Q69) Law of demand is applicable to ________. Show Answer

Q70) Prestige goods or articles of snob appeal is an example of _______. Show Answer

Q71) When there is decrease in price, the demand will _______. Show Answer

Q72) If the price of the commodity decreases, then demand ________. Show Answer

Q73) In the period of scarcity of a particular commodity, _________. Show Answer

Q74) Demand for electricity for domestic purpose is _______ demand. Show Answer

Q75) Situation when demand becomes more or less due to other factors than price is ______ in demand. Show Answer

Q76) The demand is related to price, time and place, as it is a relative concept. Show Answer

Q77) The Law of Demand is based on the Law of Diminishing Marginal utility. Show Answer

Q78) Demand and desire mean the same, and hence, Desire = Demand. Show Answer

Q79) Demand curve slopes upward from left to right positively. Show Answer

Q80) A consumer may demand more at the same price if his income increases. Show Answer

Q81) Demand for giffen goods falls even if their prices fall. Show Answer

Q82) Demand is a function of price. Show Answer

Q83) Demand = Desire + Ability to pay. Show Answer

Q84) Variation in demand is shown by a movement along the same demand curve. Show Answer

Q85) A change in demand is affected by an increase or decrease in the price of a commodity. Show Answer

Q86) Demand for tea may increases when the price of coffee rises. Show Answer

Q87) Demand schedule and curve both convey the similar information. Show Answer

Q88) Law of Demand states fall in prices leads to increase in demand. Show Answer

Q89) Economically, a desire backed by purchasing power only is known as demand. Show Answer

Q90) Rise in price is followed by rise in demand. Show Answer

Q91) Factors of production have an indirect demand. Show Answer

Q92) Greater the number of substitutes, more inelastic in the demand for a commodity. Show Answer

Q93) Price is the only determinant of demand. Show Answer

Q94) Consumer goods have a direct demand. Show Answer

Q95) Demand for food grains / salt is elastic. Show Answer

Q96) The relationship between demand for a goods and price of its substitute is ________. Show Answer

Q97) The relationship between income and demand for inferior goods is _______. Show Answer

Q98) Symbolically, the functional relationship between Demand and Price can be expressed as _______. Show Answer

Q99) When less units are demanded at high price it shows _______. Show Answer

Q100) Demand curve slopes downward. a) Inverse relationship between price and quantity demanded b) From left to right c) From right to left d) Direct relationship between price and quantity demanded Show Answer

Q101) Demand for a commodity from an individual consumer. a) Direct demand b) Market demand c) Individual demand d) Increase in demand Show Answer

Q102) Demand for a commodity from different consumer at different prices. a) Decrease in demand b) Contraction in demand c) Individual demand d) Market demand Show Answer

Q103) Marginal utility goes on diminishing. a) with additional stock of a commodity b) with additional prices c) with individual consumer d) with decrease in the stock of a commodity Show Answer

Q104) Direct demand. a) Vegetable b) Milk c) Land d) Cloth Show Answer

Q105) Indirect demand. a) Machinery b) Sugar c) Labour d) Capital Show Answer

Q106) Joint demand for tea. a) Sugar b) Milk c) Tea powder d) Rice Show Answer

Q107) Determinant of Demand. a) Price b) Population c) Income d) Advertisement Show Answer

Q108) Composite demand.a) Electricityb) Waterc) Steeld) Xerox machine Show Answer

Q109) Competitive demand. a) Thums-up b) Pepsi c) Buttermilk d) Coco-cola Show Answer

Q110) The law of demand was introduced by neo-classical economist. a) Alfred Marshall b) Adam Smith c) Ragnar Frisch d) Samuelson Show Answer

Q111) Assumptions for the law of Demand. a) Constant Income b) No change in taxation policy c) change in tradition d) Stable population Show Answer

Q112) Exceptions to the law of Demand. a) Inferior goods b) Jewellery c) Habitual goods d) Price of substitute goods Show Answer

Q113) Variation in Demand. a) Change in Price b) Change in quantity demanded c) Change in other factors d) No change in other factors Show Answer

Q114) Expansion of Demand a) Fall in price b) Rise in quantity demanded c) No change in income d) change in population Show Answer

Q115) Change in Demand. a) Constant price b) Change in demand c) Changes in other factors d) Increase and Decrease in demand Show Answer

Q116) Individual demand. Aa) Micro economics b) Slicing method c) Lumping method d) Study of individual unit Show Answer

Q117) Market demand. a) Aggregate demand b) Macro economics c) Micro economics d) Lumping method Show Answer

Q118) Decrease in demand. a) Favourable changes in other factors b) Unfavourable changes in other factors c) Decrease in quantity demanded d) Changes in income of the consumer Show Answer

Q119)
Which of the following is true for demand?
i. Demand is a relative concept.
ii. Demand is expressed w.r.t. time & price.
iii. Demand is an absolute concept.
iv. Demand is expressed w.r.t. time & income. Show Answer

Q120) The following together form demand.
i. Desire
ii. Willingness to pay
iii. Availability of commodity
iv. Ability to pay Show Answer

Q121) This is not a reason justifying the downward sloping demand curve.
i. Law of DMU
ii. Single use of commodity
iii. Substitution effect
iv. Expenditure effect Show Answer

Q122) These are the various types of demand.
i. Direct demand
ii. Derived demand
iii. Composite demand
iv. Joint demand Show Answer

Q123)
These are examples of products having complementary demand.
i. Tea & Coffee
ii. Mobile and charger
iii. Sugar & Jaggery
iv. Car and fuel Show Answer

Q124) Which of these are determinants of demand?
i. Advertisement
ii. Tastes, Habits and Fashion
iii. Size of population
iv. No. of suppliers Show Answer

Q125) This is not an exception to the law of demand.
i. Luxury car
ii. Low quality rice
iii. Coffee as a habit
iv. Body spray or deodorant Show Answer

Q126) This means a rise in demand due to cut in tax rates by the government.
i. Increase in demand
ii. Expansion of demand
iii. Growth in demand
iv. Change in demand Show Answer

Q127) This means a fall in demand due to a fall in price of the substitute product.
i. Fall in demand
ii. Degrowth in demand
iii. Decrease in demand
iv. Contraction in demand Show Answer

Q128) A decrease in demand is represented diagrammaticaily by:
i. Shift in demand curve from left to right
ii. Shift in demand curve from right to left
iii. Upward movement on the same curve
iv. Downward movement on the same curve Show Answer

Q129) Assertion (A): A poor person wanting to buy a car is not demand.
Reasoning (R): Demand is the desire which is backed by willingness and ability to pay. Show Answer

Q130) Assertion (A): Demand is a relative concept.
Reasoning (R): Demand is always expressed with reference to time and price. Show Answer

Q131) Assertion (A): Direct demand is the demand for factors of production.
Reasoning (R): Consumer goods satisfy the consumption needs of the consumers. Show Answer

Q132) Assertion (A): A fall in income of a consumer will lead to fall in demand for the commodity.
Reasoning (R): Income of a consumer decides purchasing power which in turn influences demand. Show Answer

Q133) Assertion (A): The law of demand is based on certain assumption.
Reasoning (R): Law of demand was introduced by Prof. Alfred Marshall. Show Answer

Q134) Assertion (A): There is a direct relationship between price and quantity demanded.
Reasoning (R): Quantity demanded rises with a fall in price and quantity demand falls with a rise in price. Show Answer

Q135) Assertion (A): Prestige goods are an exception to the law of demand.
Reasoning (R): Rich people buy more of prestige goods even when.their prices are high. Show Answer

Q136) Assertion (A): Contraction of demand refers to a fall in demand due to rise in price alone.
Reasoning (R): Contraction in demand is represented by downward movement on the same demand curve. Show Answer

Q137)
Assertion (A): Increase in demand refers to a rise in demand due to fall in price alone.
Reasoning (R): Increase in demand is represented by a shift in demand curve from left to right. Show Answer

Q138) Assertion (A): Aggregate demand is a macroeconomic concept.
Reasoning (R): Aggregate demand refers to total amount of sales proceeds expected by an entrepreneur. Show Answer

Q139) When the commodity can be used for satisfying several needs, its demand will ___________ with a fall in price. Show Answer

Q140) The demand for doth, sugar, notebooks, pen, bench etc. is ___________ demand. Show Answer

Q141) The ______________ of a consumer decides purchasing power which in turns influences the demand for the product. Show Answer

Q142) If the commodity is a ___________, then its demand will continue to be the same irrespective of its price. Show Answer

Q143) The law of demand explains functional relationship between _____________ and quantity demanded. Show Answer

Q144) The demand curve for exceptions to the law of demand has a ___________ slope. Show Answer

Q145) The tendency of people to buy superior goods when the price of inferior goods fall was observed by _____________ in England. Show Answer

Q146) When the demand for a commodity falls or rises due to a change in its price alone, it is called as _______________. Show Answer

Q147) An expansion in demand refers to rise in the quantity demand due to __________. Show Answer

Q148) An increase in demand refers to rise in quantity demanded due to __________. Show Answer