Mock Test : DEFENCE Economy CT 7: Consumer Equilibrium and Demand

Welcome to your DEFENCE Economy CT 7: Consumer Equilibrium and Demand

Question No. 1

What does a price ceiling above the equilibrium price result in?

A. A surplus of goods

B. No impact on the market

C. A shortage of goods

D. Equilibrium in the market

None

Question No. 2

Which of the, following statements is/are correct?

1. If the increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase.

2. If the increase in demand is of greater magnitude than an increase in supply, both the equilibrium price and the equilibrium quantity will increase.

3. If the increase in supply is of greater magnitude than an increase in demand, equilibrium price will fall but equilibrium quantity will increase.

Select the correct answer using the code given below:

A. 1 only

B. 1 and 2 only

C. 2 and 3 only

D. 1, 2 and 3

None

Question No. 3

A good for which demand decreases with increase in income of consumer is called

A. Public good

B. Complementry good

C. Inferior good

D. Giffen good

None

Question No. 4

In consumer theory, which one is constant in the indifference curve?

A. Price

B. Demand

C. Supply

D. Utility

None

Question No. 5

Which of the following is correct regarding Opportunity Cost?

A. To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others.

B. Opportunity cost analysis does not play a crucial role in determining a business’s capital structure.

C. Considering the value of opportunity costs can not guide individuals and organizations to more profitable decision making.

D. It is the benefit that is derived from an option that is chosen.

None

Question No. 6

Who is known as the "Father of Modern Economics"?

A. Adam Smith

B. Marshal

C. Keynes

D. Robins

None

Question No. 7

Demand curve of a firm under perfect competition is

A. Perfectly elastic (E_d = ∞)

B. Perfectly inelastic (E_d = 0)

C. Relatively elastic (E_d > 1)

D. Relatively inelastic (E_d < 1)

None

Question No. 8

8. Match List I with List II

Market	Features
1. Perfect competition	A. Product improvements
2. Monopoly	B. Price rigidity
3. Oligopoly	C. Smaller competitors can't survive
4. Monopolistic competition	D. All firms are price takers

Find the correct code.

A. 1-D 2-C 3-B 4-A

B. 1-C 2-D 3-B 4-A

C. 1-D 2-C 3-A 4-B

D. 1-A 2-B 3-C 4-D

None

Question No. 9

When two goods are completely interchangeable, they are

A. Perfect substitutes

B. Perfect complements

C. Giffen goods

D. Veblen goods

None

Question No. 10

Which among the following best describes the situation of oligopoly?

A. when a company and its product offerings dominate a sector or industry

B. when all the firms of an economy collude to fix prices

C. when small number of firms collude to fix prices

D. when market situation is dominated by a single buyer

None

Mock Test : DEFENCE Economy CT 7: Consumer Equilibrium and Demand

Dailymocktest.com

Leave a Comment Cancel reply

Catagory

More Link

Follow Us