Demand and Supply Mcqs Test 07 Preparation Online Shani Malik — May 19, 2018 in Economics • add comment Demand and Supply Mcqs Test 07 Preparation Online 1. An indifference curve slopes down towards right since more of one commodity and less of another result in?A. Same satisfaction B. Maximum satisfaction C. Greater satisfaction D. Decreasing Expenditure Loading... 2. If the demand for a commodity is inelastic, an increase in its price will cause the total expenditure of the consumers of the commodity to?A. Increase B. Any of the aboveC. Remain the same D. Decrease Loading... 3. Which one is not a assumption of the theory of demand based on analysis of indifference curves?A. Constant marginal utility of money B. Diminishing marginal rate of substitution C. Given scale of preferences as between different combinations of two goods D. Consumers would always prefer more of a particular good to less of it, other things remaining the same Loading... 4. Which of the following statements is incorrect?A. Convexity of a curve implies that the slope of the curve diminishes as one moves from left to right B. The total effect of a change in the price of a good on its quantity demanded is called the price effectC. An indifference curve must be downward sloping to the right D. The elasticity of substitution between two goods to a consumer is zero Loading... 5. The Revealed Preference Theory deduces the inverse price-quantity relationship from?A. Observed behaviour of the consumer B. IntrospectionC. Postulate of utility maximization D. Assumption of indifference Loading... 6. The consumer is in equilibrium at a point where the budget line?A. Is above an indifference curve B. Is below an indifference curve C. Is tangent to an indifference curve D. Cuts an indifference curve Loading... 7. The elasticity of substitution between two perfect substitutions is?A. Less than infinity B. Greater than zero C. Zero D. Infinity Loading... 8. If regardless of changes in its price, the quantity demanded of a commodity remains unchanged, then the demand curve for the commodity will be?A. Vertical B. Positively sloped C. Horizontal D. Negatively sloped Loading... 9. In the case of a Giffen good, the demand curve will be?A. Downward-slping to the right B. Horizontal C. Backward falling to the left D. Upward-slopping to the right Loading... 10. The budget-line is also known as the?A. Production possibility line B. Iso-utility curve C. Consumption possibility lineD. Isoquant Loading... Loading... Related NTS Results Post:Demand and Supply Mcqs Test 03 Preparation OnlineDemand and Supply Mcqs Test 05 Preparation OnlineDemand and Supply Mcqs Test 04 Preparation OnlineDemand and Supply Mcqs Test 02 Preparation OnlineDemand and Supply Mcqs Test 06 Preparation OnlineDemand and Supply Mcqs Test 01 Preparation OnlineDemand and Supply Mcqs Test 08 Preparation OnlineIslamabad Electric Supply Company IESCO NTS Jobs…
