4545 Demand and Supply-Economics Register For Free Quiz NamePhone NumberEmail 1 / 29 1. For luxuries, the elasticity is ................. A) Equal to 1 B) Zero C) More than 1 D) Less than 1 2 / 29 2. Which of the following is not the exception to the law of demand? A) Giffen goods B) Conspicuous necessities C) Level of income D) Future expectations 3 / 29 3. In the long run, monopolist firm earn ................. A) Any of these B) Normal profit C) Loss D) Supernormal profit 4 / 29 4. When all the firms are functioning with normal profit, ................. is said to be in equilibrium. A) Firm B) None of these C) Industry D) Market 5 / 29 5. Externalities may be: A) Positive B) Negative C) Mixed D) Both (Positive) and (Negative) 6 / 29 6. Which is the other name that is given to the average revenue curve? A) Indifference curve B) Profit curve C) Demand curve D) Average cost curve 7 / 29 7. The price of the product depends upon : A) Both (Demand) and (Supply) B) Supply C) Demand D) Production 8 / 29 8. Goods for which demand rises when the price increases and demand falls when price decreases. A) Giffen goods B) Inferior goods C) Normal goods D) Superior goods 9 / 29 9. Kinked demand curve under oligopoly is designed to show: A) Price rigidity B) Collusion among rivals C) Price and output determination D) Price leadership 10 / 29 10. Total revenue falls as the price of a good increase if price elasticity of demand is A) Inelastic B) Elastic C) Perfectly Elastic D) Unitary elastic 11 / 29 11. ................. refers to the amount of money which a firm realizes by selling certain units of a commodity . A) Total revenue B) Total product C) Average revenue D) Marginal revenue 12 / 29 12. The perfectly competitive firm can sell its output at ................. prices. A) Normal B) Variable C) Normal or fixed D) Fixed 13 / 29 13. Discriminating monopolist charges a higher price from the market which has a relatively ................. demand. A) Perfectly elastic B) Elastic C) Greater than 1 D) Inelastic 14 / 29 14. Monopolist is a ................. A) Price motivator B) Price taker C) Price dictator D) Price maker 15 / 29 15. Which of the following are the barriers to entry? A) All of the above B) High cost of production C) Government regulation D) Product differentiation 16 / 29 16. If the price for laptops increases, and relatively the demand for tablets increases then, laptops and tablets are A) Ceteris Paribus products B) Substitute products C) Independent products D) Complementary products 17 / 29 17. If demand decreases and supply remains constant, equilibrium price will ................. A) Constant B) No affect C) Moves up D) Moves down 18 / 29 18. Excess supply of a commodity will cause ................. in its price. A) Rise B) No effect C) Fall D) Consistency 19 / 29 19. The reason for the kinked demand curve is that: A) The oligopolist believe that competitors will follow price cuts but not price rises. B) None of these C) The oligopolist believe that competitors will follow output increase but not output. D) Both 20 / 29 20. ........... are defined as economic activities that have positive effect on unrelated third party. A) Positive Externalities B) None of these C) Negative Externalities D) Both (Positive Externalities) and (Negative Externalities) 21 / 29 21. Demand for car decreases due to increase in price. It implies that car and petrol are............... A) Substitute goods B) Complementary goods C) Inferior goods D) Normal goods 22 / 29 22. In general speaking, market refers to a place but in economic terms refers to..................... A) All of the above B) Place again C) Internet D) Product 23 / 29 23. Under which of the following forms of market structure does a firm has no control over the price of its product? A) Oligopoly B) Monopolistic competition C) Perfect competition D) Monopoly 24 / 29 24. Under law of demand A) Price of commodity is an independent variable B) Reciprocal relationship is found between price and quantity demanded C) All of these D) Quantity demanded is dependent variable 25 / 29 25. What is the shape of the demand curve faced by a firm under perfect competition? A) Negatively sloped B) Positively sloped C) Horizontal D) Vertical 26 / 29 26. OPEC is an example of: A) Oligopoly B) Dipole C) Monopolistic competition D) Monopoly 27 / 29 27. Government fixes the price of critical inputs, which of the following are the critical inputs? Petrol Diesel Fertilizers Coal Kerosene A) (i), (ii), (iii), (iv) and (v) B) Only (i), (ii), (iii) and (v) C) Only (i), (ii) and (iii) D) Only (i), (ii) and (v) 28 / 29 28. Which of the following is correct regarding perfect competition? Firm is the price maker (ii) AR = MR (iii) MR is linear and parallel to x - axis A) Only (i) and (ii) B) Only (i) and (iii) C) All (i), (ii) and (iii) D) Only (ii) and (iii) 29 / 29 29. Product differentiation is the feature of ................. A) Monopoly B) Oligopoly C) Monopolistic competition D) Perfect competition Your score is The average score is 48% LinkedIn Facebook Twitter 0% Restart quiz
