Micro Economics MCQ
Micro Economics MCQ Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
151. If the demand curve is linear and negatively sloped, the marginal revenue curve has a slope:
A. Negative
B. Positive
C. Neither negative nor positive
D. Either negative or positive
Answer:A
152. Other things remaining the same, the quantity of a product demanded increases with —– in price.
A. Increase
B. Decrease
C. Variation
D. None of the above
Answer:B
153. For complementary goods, the cross elasticity of demand:
A. Positive
B. Negative
C. Zero
D. None
Answer:B
154. Relation between price of a commodity and demand for another commodity is
measured by:
A. Price elasticity
B. Income elasticity
C. Cross elasticity
D. Elasticity of substitution
Answer:C
155. The demand curve for Giffen’s goods:
A. Vertical
B. Horizontal
C. Negative slope
D. Positive slope
Answer:D
156. When Q = f (P), the elasticity coefficient is measured by:
A. ΔQ/ΔP / P/Q
B. ΔP/ΔQ * Q/P
C. ΔQ/ΔP * P/Q
D. P/ΔQ / Q/P
Answer:C
157. Income elasticity of demand for inferior goods is:
A. Negative
B. Positive
C. Zero
D. Unity
Answer:A
158. In the case of luxury goods, the income elasticity of demand will be:
A. Less than unity
B. Unity
C. More than unity
D. All the above
Answer:C
159. Income elasticity is positive, but less than unity in the case of:
A. Necessity
B. Luxury
C. Inferior
D. Substitute
Answer:A
160. The change in demand is due to the change in :
A. Income
B. Own price
C. Prices of related products
D. Expectations
Answer:B
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