Economics MCQs

A. The price elasticity of demand is -2
B. The good is inferior
C. Income elasticity is + 0.5
D. Income elasticity is + 2

A. The products are substitutes and demand is cross price elastic
B. The products are substitutes and demand is cross price inelastic
C. The products are complements and demand is cross price elastic
D. The products are complements and demand is cross price inelastic

A. Will cause an inward shift of demand
B. Will cause an outward shift of supply
C. May be caused by a fall in demand
D. Leads to a higher level of production

A. Utility is at a maximum with the first unit
B. Increasing units of consumption increase the marginal utility
C. Marginal product will fall as more units are consumed
D. Total utility will rise at a falling rate as more units are consumed

A. Quantity setting
B. Price fixing
C. Price rationing
D. Quantity adjustment.

A. A decrease in supply.
B. A rise in income
C. A fall in the number of substitute goods
D. A rise in the price of inputs

A. Zero elastic
B. Elastic
C. Perfectly elastic
D. Inelastic

A. Elastic
B. Perfectly elastic
C. Unitarily elastic
D. Inelastic.

A. Normal goods
B. Unrelated goods
C. Substitutes.
D. Complements

A. Price to fall
B. Quantity supplied to decrease.
C. Price to rise
D. Quantity demanded to increase