MCQOPTIONS
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MCQOPTIONS
This section includes 16 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following would cause a demand curve for a good to be price inelastic ? |
| A. | The good is luxury |
| B. | There are a great number of substitutes for the good |
| C. | The good is a necessity |
| D. | The good is an inferior good |
| Answer» D. The good is an inferior good | |
| 2. |
The price elasticity of demand is defined as ? |
| A. | the percentage change in the quantity demanded divided by the percentage change in income. |
| B. | the percentage change in income divided by the percentage change in the quantity demanded |
| C. | the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good |
| D. | none of these answers |
| Answer» D. none of these answers | |
| 3. |
The demand for which of the following is likely to be the most price inelastic ? |
| A. | transportation |
| B. | taxi rides |
| C. | bus tickets |
| D. | airline tickets |
| Answer» B. taxi rides | |
| 4. |
in general a flatter demand curve is more likely to be ? |
| A. | price elastic |
| B. | none of these answers |
| C. | unit price elastic |
| D. | price inelastic |
| Answer» E. | |
| 5. |
If there is excess capacity in a production facility it is likely that the firm’s supply curve is ? |
| A. | price inelastic |
| B. | none of these |
| C. | unit price elastic |
| D. | price elastic |
| Answer» E. | |
| 6. |
If the income elasticity of demand for a good is negative it must be ? |
| A. | an elastic good |
| B. | an inferior good |
| C. | a normal good |
| D. | a luxury good |
| Answer» C. a normal good | |
| 7. |
If the cross-price elasticity between two goods is negative the two goods are likely to be ? |
| A. | substitutes |
| B. | complements |
| C. | necessities |
| D. | luxuries |
| Answer» C. necessities | |
| 8. |
If supply is price inelastic the value of the price elasticity of supply must be ? |
| A. | infinite |
| B. | Zero |
| C. | less than 1 |
| D. | none of these |
| E. | greater than 1 |
| Answer» D. none of these | |
| 9. |
If demand is linear (a straight line) then price elasticity of demand is ? |
| A. | elastic in the upper portion and inelastic in the lower portion |
| B. | inelastic in the upper portion and elastic in the lower portion |
| C. | inelastic throughout |
| D. | constant along the demand curve |
| Answer» B. inelastic in the upper portion and elastic in the lower portion | |
| 10. |
If consumers think that there are very few substitutes for a good, then ? |
| A. | Supply would tend to be price elastic |
| B. | none of these answers |
| C. | demand would tend to be price inelastic |
| D. | demand would tend to be price elastic |
| Answer» D. demand would tend to be price elastic | |
| 11. |
If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ? |
| A. | 1.50 |
| B. | 1.15 |
| C. | none of these |
| D. | 0.15 |
| E. | 1.00 |
| Answer» F. | |
| 12. |
If an increase in the price of a good has no impact on the total revenue in that market demand must be ? |
| A. | all of these answers |
| B. | price inelastic |
| C. | unit price elastic |
| D. | price elastic |
| Answer» D. price elastic | |
| 13. |
If a supply curve for a good is price elastic then ? |
| A. | the quantity supplied is sensitive to changes in the price of that good |
| B. | That quantity demanded is insensitive to changes in the price of that good |
| C. | the quantity demanded is sensitive to changes in the price of that good |
| D. | the quantity supplied is incentive to changes in the price of that good |
| E. | None of these |
| Answer» B. That quantity demanded is insensitive to changes in the price of that good | |
| 14. |
If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ? |
| A. | income inelastic |
| B. | price inelastic |
| C. | price elastic |
| D. | unit price elastic |
| Answer» D. unit price elastic | |
| 15. |
If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ? |
| A. | zero |
| B. | infinite |
| C. | one |
| D. | unable to be determined form this information |
| Answer» B. infinite | |
| 16. |
A decrease in supply (shift to the left) will increase total revenue in that market if ? |
| A. | demand is price inelastic |
| B. | supply is price elastic |
| C. | supply is price inelastic |
| D. | demand is price elastic |
| Answer» B. supply is price elastic | |