Economics MCQ Quiz Hub

1. A decrease in demand causes the equilibrium price to:
Rise
Fall
Remain constant
Indeterminate

2. When price is below equilibrium level there will be:
Surplus commodity in the market
Shortage of commodity in the market
Supply curve will shift
Demand curve will shift

3. If equilibrium price rises but equilibrium quantity remains unchanged the cause is:
Supply and demand both increase equally
Supply and demand both decrease equally
Supply decreases and demand increases
Supply increases and demand decreases

4. Price of a product is determined in a free market:
By demand for the product
By supply of the product
By both demand and supply
By the government

5. An increases in the price of mutton provides information which:
Tells consumers to buy more mutton
Tells consumers to buy more chicken
Tells producers to produce more mutton
Provides no information

6. In market equilibrium supply is vertical line. The downward sloping demand curve shifts to the rights. Then:
Price will fall
Price remains same
Price will rise
Quantity rises

7. Equilibrium:
Is a state that can never be achieved in economics
Is an important idea for predicting economic changes
Is a stable condition
Is an unstable condition

8. Ten rupees is the equilibrium price for good X. If government fixes price at Rs. 5 there is:
A shortage
A surplus
Excess supply
None of the above

9. A rise in supply and demand in equal proportion will result in:
Increase in equilibrium price and decrease in equilibrium quantity
Decrease in equilibrium price and increase in equilibrium quantity
No change in equilibrium price and increase in equilibrium quantity
Increase in equilibrium price and no change in equilibrium quantity

10. The price and sales of sugar both increase. What could be the cause of this?
A decrease in the incomes of the consumers
A decrease in the tax on sugar
An increase in the wages of workers in the sugar industry
An increase in the price of sugar substitutes