Practice MCQ
Practice MCQ
Practice MCQ
1. The fact that human wants cannot be fully satisfied with the available resources is
called the problem of :
A. what to produce
B. opportunity cost
C. scarcity
D. choices
A. capital
B. land
C. Government
D. Labour
12. The law of demand hypothesizes that the lower the price charged for a product,
16. If the income of a consumer decreases and she increases her demand for her good,
then the good is a
A. normal good.
B. inferior good.
C. substitute good.
D. complementary good.
A. shift in the demand curve as does change in the current price of the goods.
B. shift in the demand curve, while a change in the current price of the goods
cause a movement along the demand curve.
C. movement along the curve, as does a change in the current price of the
goods.
D. movement along the demand curve, while a change in the current price
causes a shift of the demand curve.
18. Which of the following things is assumed to be constant along an individual’s demand
curve for good X?
19. Assume that goods X and Y are substitutes for each other. If the price of Y rises, then
21. Which of the following changes will certainly “not” shift the demand curve for apples?
23. Which of the following could not cause an increase in the supply of wheat?
24. All of the following are held to be constant when the supply curve for a product is
drawn, except
A. reflects the amounts which producers will want to offer at each price in a
series of prices.
B. is reflected in an upsloping supply curve.
C. shows that the relationship between price and quantity supplied is positive.
D. is reflected in all of the above.
A. the “selling price” and the “buying price” need not be equal.
B. The market may, or may not, be in equilibrium.
C. Either a shortage or a surplus of a product might exist, depending upon the
degree of competition.
D. The quantity, which the consumers want to purchase and the amount
producers choose to sell, are the same.
31. The dumping of large quantity of rice from Thailand into the Malaysian rice market
will have the following result on the equilibrium price and quantity of rice in Malaysia:
A. government is imposing a legal price which is less than the equilibrium price.
B. government is imposing a legal price which is greater than the equilibrium
price.
C. the relevant product is currently available in excess supply.
D. a price that must be charged in the market.
Answer the next two questions on the basis of the given SS and DD data
Quantity Price Quantity
Demanded per Supplied
chicken
($)
25 5 67
28 4 59
33 3 47
38 2 38
45 1 32
33. Equilibrium price will be:
A. $4.
B. $3.
C. $2.
D. $1.
34. If the price in this market was $4:
A. The amount of chicken sold and purchased are the same.
B. Buyers would want to purchase more chicken.
C. Sellers would not be able to sell all of their chickens.
D. There would be a shortage of chickens.