Business Economics

F.Y.B.com sem 1

1.    The
market demand schedule shows an _____ relationship between price and demand.
a.    direct
b.    No
c.    inverse
d.    none
of these
ANS:
C

2.    The
market demand curve slopes _____.
a.    upwards
b.    Horizontal
c.    Vertical
d.    downward
ANS:
D

3.    _____
refers to the total quantities of commodity offered for sale by all in
producers.
a.    equilibrium
price
b.    Market
demand
c.    None
of these
d.    market
supply
ANS:
D

4.    When
the market schedule is plotted on a graph we get _____ curve.
a.    Equilibrium
point
b.    Market
demand
c.    None
of these
d.    market
supply
ANS:
D

5.    The
market supply curve slopes _____ to the right.
a.    downward
b.    upwards
c.    Vertical
d.    Horizontal
ANS:
A

6.    The
_____ is determined by the interaction of market demand and supply.
a.    market
b.    price
c.    equilibrium
point
d.    none
of these
ANS:
A

7.    The
point at which quantity demand equals to supply is the _____.
a.    equilibrium
point
b.    none
of these
c.    EVS
d.    FRM
ANS:
A

8.    With
an increase in supply, demand remaining unchanged, the equilibrium price _____.
a.    raised
b.    falls
c.    constant
d.    none
of these
ANS:
B

9.    Shift
in the supply curve to the left will _____ the equilibrium price.
a.    no
effect
b.    increase
c.    decreased
d.    none
of these
ANS:
D

10. Shift
in the supply curve to the left will increase the _____.
a.    Market
demand
b.    equilibrium
price
c.    Market
supply
d.    none
of these
ANS:
B

11. The
market demand curve slopes _____ from left to right.
a.    downward
b.    upward
c.    horizontal
d.    vertical
ANS:
A

12. The
market supply schedule shows _____ relationship between price and quantity
supplied.
a.    inverse
b.    direct
c.    no
d.    none
of these
ANS:
B

13. The
point at which the quantity demanded equals supplied is the _____.
a.    total
supply
b.    total
demand
c.    equilibrium
point
d.    none
of these
ANS:
C

14. A
case of increase in demand, supply remaining unchanged, the equilibrium price
_____.
a.    rises
b.    falls
c.    constant
d.    none
of these
ANS:
A

15. A
case of decrease in supply, demand remaining unchanged, the equilibrium price
_____.
a.    falls
b.    rises
c.    constant
d.    None
of these
ANS:
B

16. As
price _____ , quantity demanded decreases and quantity supplies increases.
a.    decreases
b.    increases
c.    remain
constant
d.    None
of these
ANS:
B

17. Market
_____ is derived by adding up all the individual demand.
a.    demand
b.    supply
c.    price
d.    none
of these
ANS:
A

18. Which
of the following shows the relationship between the price of a good and the
amount of the good that consumers want at that price?
a.    Supply
curve
b.    Demand
curve
c.    Supply
schedule
d.    Production
possibilities frontier
ANS:
B

19. The
market clearing price is also called the ________.
a.    current
price
b.    prevailing
price
c.    equilibrium
price
d.    None
of the above
ANS:
C

20. A
straight line demand curve implies _____ demand function.
a.    Linear
b.    Non–
Linear
c.    Steep
d.    Vertical
ANS:
A

21. Dx
= a – b Px is a case of _____ demand function.
a.    Linear
b.    Steep
c.    Vertical
d.    Non–
Linear
ANS:
A

22. Demand
and price have _____ relationship.
a.    No
b.    inverse
c.    Direct
d.    None
of these
ANS:
B

23. The
demand curve is _____ elastic.
a.    Unirary
b.    perfectly
c.    Relatively
d.    None
of these
ANS:
B

24. _____
explains the relationship between demand for a commodity and it determinants.
a.    Demand
b.    Supply
function
c.    Demand
function
d.    Supply
ANS:
C

25. The
demand curve for a perfectly competitive firm is _____.
a.    Upward
slopping
b.    downward
sloping
c.    perfectly
elastic
d.    Horizontal
ANS:
C