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.
181. If a positively sloped linear supply curve crosses the quantity axis, the elasticity of supply is:
A. Inelastic
B. Elastic
C. Unitary elastic
D. Perfectly elastic
Answer:A
182. If a positively sloped linear supply curve passes through the origin, the elasticity of supply is:
A. Inelastic
B.Elastic
C. Unitary elastic
D. Perfectly elastic
Answer:C
183. The horizontal supply curve parallel to quantity axis represents:
A. Elastic supply
B. Inelastic supply
C. Perfectly elastic suppl
D. Perfectly inelastic supply
Answer:C
184. A fall in income of the consumer, other things being equal, causes:
A. Increase in demand
B. Decrease in demand
C. Increase in quantity demanded
D. Decease in quantity demanded
Answer:A
185. Which of the following causes an increase in supply:
A. Fall in price of inputs
B. Increase in number of producers
C. Decrease in the price of production substitutes
D. All of the above
Answer:D
186. Which of the following Elasticities measure movement along a curve, rather than a shift in the curve:
A. Price elasticity of demand
B. Income elasticity of demand
C. Cross elasticity of demand
D. None of the above
Answer:A
187. Cross elasticity of demand in the case of substitutes:
A. Zero B. Negative C. Positive D. Infinity
188. A movement down the given demand curve shows:
A. Increase in demand B. Decrease in demand
C. Extension in demand D. Contraction in demand
Answer:C
189. Which of the following results in an increase in an increase in demand:
A. Fall in prices of substitutes
B. Increase in price of complementary goods
C. Fall in consumer’s income
D. None of the above
Answer:D
190. Change in quantity supplied of a product can result from:
A. Changes in own price
B. Changes in cost of production
C. Change in technology
D. Change in price of related products
Answer:A
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