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.
161. Supply curve represents ——– relationship between quantity and price
A. Direct
B. Inverse
C. Either direct or inverse
D. None of the above
Answer:A
162. A market:
A. Necessarily refers to a meeting place between buyer and sellers
B. Does not necessarily refers to a meeting place between buyer and sellers
C. Extends over the entire country
D. Extends over a city
Answer:B
163. The market equilibrium for a commodity is determined by:
A. Market demand
B. Market supply
C. Balancing of the forces of demand and supply
D. Any of the above
Answer:C
164. In drawing an individual demand curve for a commodity, all but which of the following are kept constant:
A. Individual’s money income
B. The prices of the related commodity
C. Price of the commodity under consideration
D. Tastes of the consumer
Answer:C
165. A fall in the price of the commodity holding everything else constant results in:
A. Increase in demand
B. Decrease in demand
C. Increase in quantity demanded
D. Decrease in quantity demanded
Answer:C
166. When an individual’s income rises, when everything else remains the same, his demand for normal goods:
A. Rises
B. Falls
C. Remains the same
D. Any of the above is possible
Answer:A
167. When an individual’s income falls, when everything else remains the same, his demand for inferior goods:
A. Increases
B. Decreases
C. Remains unchanged
D. Cannot say
Answer:A
168. When the price of the substitute commodity of X falls, the demand for X:
A. Rises
B. Falls
C. Remains unchanged
D. All of the above is possible
Answer:B
169. When both the price of a substitute and the price of complement of X rises, the demand for X:
A. Rises
B. Falls
C. Remains unchanged
D. All of the above is possible
Answer:D
170. If the supply curve of the commodity is having a positive slope, a rise in the price of the commodity, results in:
A. Increase in supply
B. Increase in quantity supplied
C. Decrease in supply
D. Decrease in quantity supplied
Answer:B
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