class test for class 12 ECONOMICS
1.Normally a demand curve will have the shape:
2.Law of demand shows relation between
Income and price of commodity
Income and quantity demand
Price and quantity of a commodity
Quantity demanded and quantity supplied
3.If quantity demanded is completely unresponsive to changes in price, demand is
4.The following are causes of shift in demand EXCEPT the one:
change in income
change in fashion
change in price
change in prices of subsitute goods.
5.Price and demand are positively correlated in case of:
6.Demand for a commodity refers to:
Need for the commodity
Desire for the commodity
Amount of the commodity demanded at a particular price and at a particular time
Quantity demanded of that commodity
7.The horizontal demand curve parallel to x-axis implies that the elasticity of demand is:
A. Greater than zero but less than infinity
Equal to one
8. Income elasticity of demand is defined as the degree of responsiveness of:
Quantity demanded to a change in income
Price to a change in income
Income to a change in quantity demanded
Quantity demanded to a change in price
9. The supply of a good refers to:
Stock available for sale
Total stock in the warehouse
Actual Production of the good
Quantity of the good offered for sale at a particular price per unit of time
10.Supply curve will shift when:
change in technology
price remains constant
11.If price changes by 1% and supply changes by 2% then supply is:
12.If elasticity of supply is greater than one. Supply curve will be:
Passing through origin
13.When supply of a commodity increases without change in price it is called:
Fall in supply
Expansion in supply
Increase in supply
Contraction in supply
14.Contraction of demand is the result of:
Decrease in the number of consumers
Increase in the price of the commodity
Increase in the prices of other goods
Decrease in the income of purchasers
15.Which of the following pairs of commodities is an example of substitutes?
Tea and sugar
Pen and ink
Shirt and trousers
Tea and coffee
16.In the case of an inferior good, the income elasticity of demand is:
17.The consumer is in equilibrium at a point where the budget line:
Is tangent to an indifference curve
Is above an indifference curve
Is below an indifference curve
Cuts an indifference curve
18. An increase in the demand for a good will cause
An increase in equilibrium price and a decrease in equilibrium quantity.
A decrease in equilibrium price and quantity
An increase in equilibrium price and quantity.
A decrease in equilibrium price and an increase in equilibrium quantity.
19.A decrease in demand causes the equilibrium price to:
20.When price is below equilibrium level, there will be:
Supply curve will shift
Surplus commodity in the market
Demand curve will shif
Shortage of commodity in the market
21.Market equilibrium refers to a situation in which market price;
Is high enough to allow firms to earn a fair profit.
Is at a level where there is neither a shortage nor a surplus.
Is low enough for consumers to buy all that they want.
Is just above the intersection of the market supply and demand curves.
22.An increase in the supply of a good will cause
an increase in equilibrium price and quantity.
a decrease in equilibrium price and quantity
a decrease in equilibrium price and an increase in equilibrium quantity.
an increase in equilibrium price and a decrease in equilibrium quantity.
23.Macroeconomics is bottom-up view of the economy.
24.If commodity X and the commodity Y are subsitute goods, what will be the cross elasticity o demand?
25.This is an assumption of law of demand:
Income of consumer should not change
Quantity should not change
Price of the commodity should not change
Supply should not change
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