Economics MCQs

A. In the short run rather than the long run
B. If factors of production are relatively immobile between industries
C. If there are very few producers
D. If it is easy to expand output

A. Demand shifts outwards
B. The supply curve shifts inwards
C. The quantity supplied falls when the price falls
D. The supply curve shifts outwards

A. +2
B. +0.5
C. -2
D. -0.5

A. Reduce the general price level and reduce national income
B. Reduce the general price level and increase national income
C. Increase the general price level and reduce national income
D. Increase the general price level and increase national income

A. Aggregate supply is price inelastic
B. Aggregate supply is price elastic
C. Aggregate supply has a unitary price elasticity
D. Aggregate demand is price inelastic

A. Total utility is zero
B. An additional unit of consumption will decrease total utility
C. An additional unit of consumption will increase total utility
D. Total utility is maximized

A. Shift demand for product a outwards
B. Shift demand for product a inwards
C. Shift supply for product a outwards
D. Shift supply for product a inwards

A. Demand is inversely related to income
B. Demand is inversely related to price
C. Demand is directly related to price
D. Demand is inversely related to the price of substitutes

A. Demand is price inelastic
B. The good is inferior
C. Income elasticity is -2
D. The product is normal

A. Reduces revenue
B. Leaves revenue unchanged
C. Increase revenue
D. Reduces costs