Quiz On ME

QUIZ
UNIT 2
Presented by:
Vibhor Agarwal
Q1. Father of Economics ?
a. Alfred Marshall
b. Adam smith
c. Prof. Samuelsson
d. Prof. kines
Q2. Nature Of Economics ?
a. Art
b. Science
c. A & B both
d. None of these
Q3. Economics is derived from Greek word ?
a. Oikosomikos
b. Oikosnomikos
c. Oikosmonikos
d. None of the above
Q4. Micro and macro term were introduced
by ?
a. Prof Samuelson in 1994
b. Prof John Robinson in 1998
c. Prof Rajnerfrish in 1993
d . Prof J B Shaw in 1990
Q5. Macroeconomics deals with ?
a. Behavior of the firm

b . The activities of individual units
c . Economic Aggregates
d . The behavior of the electronic industry
Q6. Managerial Economics Deals with
problem of ?
a. An individual Firm
b. An Industry
c. An Economy
d . Global Economy
Q7. Managerial Economy as a special
branch of economics ?
A. Provide Ready – Make solutions to

business Problems
B. Provide Logic and Methodology to find
Solution to Business Problems
C . Provide theoretical background
D . Provide alternative answer to specific
business problems .
Q8. Demand is the ?
a. Unlimited want of consumer

b. Entire Relationships b/w the quantity
demanded and the price of the goods
c. Willingness to pay for a good if income is
large enough
d. Liability to pay for a good
Q9. Law of demand is ?
a. P D
b. P 1/D
c. A and B both
d. None of these
Q10. Demand for a commodity refers to ?
a. Desired for the commodity
b. Need for a commodity
c. Quantity of a commodity Demanded at a
certain price during any a particular
period of time
d. Quantity demanded of the commodity
Q11. All but one of the following are assumed
to remain the same while drawing an
individual demand curve for a commodity
Which one of it ?
a. The Preference of an individual
b. His Monetary income
c. Price
d. Price of related goods
Q12. Which of the following pair of goods
is an example of substitutes goods ?
a . Tea and sugar

b . Pen and ink
c . Shirt and trousers
Q13. If a people’s Income increase the quantity
demanded of a good decreases ,the good is
called ?
a . Substitute Goods
b . Normal Goods
c. inferior Goods
d . Complement Goods
Q14.The prices of tomatoes increases and
people buy tomato puree. You infer that
tomato puree and tomatoes are?
a. Normal goods
b. Complements
c. Substitutes
d. Inferior goods
Q15. Potato chips and popcorn are
substitutes a rise in the price of potato
chips will______ the demand for popcorn
and quantity of popcorn will______.
A. increase ;increase
B. Increase ;decrease
C. Decrease ;decrease
D. decrease ;increase
Q16. If the prices of orange juice increases ,the
demand for apple juice will_______.
A. Increase
B. Decrease
C. Remain the same
D. Become negative
Q17. When total demand for a commodity
whose price has fallen increase ,it is due to
a. Income effect
b. Substitution effect
c. Complementary effect
d. Price effect
Q18. With an increase in the price of diamond
,the quantity demanded also increases. This is
because it is a
a. Substitute good
b. Complementary good
c. Conspicuous good
Q19. In economics, when demand for a
commodity increases with a fall in its price it is
known as
a. Contraction of demand
b. Increase in demand
c. No change in demand
Q20.Identify the factor which generally keep
the price elasticity of demand for a good law
a. Variety of uses for that good

b. Its low price
c. Close substitutes for the good
d. High proportion of the consumer’s
income spent on it.
Q21.In the case of an inferior good, the
income elasticity of demand is
a. Positive
b. Zero
c. Negative
d. Infinite
Q22. If a demand for a good is inelastic, an
increase in its price will cause the total
expenditure of the consumer of the good to
a. Remain the same

b. Increase
c. Decrease
d. None of these
Q23.If regardless of change in its price, the
quantity demand for a good remains
unchanged, then the demand curve for the
good will be
a. Horizontal
b. Vertical
c. Positive slope
d. Negative slope
Q24. Compared to the lower-right portion,
the upper-left portion of most demand
curves tend to be
a.more inelastic
b.more elastic
c.unit elastic
d.perfectly inelastic
Q 25.You are the sales manager for a pizza
company and have been informed that the
price elasticity of demand for your most
popular pizza is greater than one .To increase
total revenues, you should
a.increase the price of the pizza.

b.decrease the price of the pizza.
c.hold pizza prices constant.
d.decrease demand for your pizza.
Q26.Selling Sweets and Namkeens at higher
price in Punjab and at lower price in Bikaner
and other parts of Rajasthan is an example of ?
a. Price sensitisation
b. price discrimination
c. price reduction
d. price harmonisation
Q27.Suppose the price of Pepsi increases, we
will expect the demand curve of coca cola to
a. Shift towards left

b. Shift towards right
c. Infinity shift towards left and than to right
d. Remain at the same level
Q28.All the following are determinates of
demand except
a. Income
b. Price of related goods
c. Tastes and preferences
d. Quantity supplied
Q29.If the price of Pepsi decreases relative to
the price of coke and 7-up the demand for
a. Coke will decrease

b. 7-up will decrease
c. Coke and 7-up will increase
d. Coke and 7-up will decrease
Q30.If a good is luxury, its income elasticity of
demand is
a. Positive and less than 1

b. Negative but greater than -1
c. Positive and greater than 1
d. Zero
Q31.The price of hot dog increases by 22%
and the quantity of hot dog demanded falls by
25%. This indicates that demand for hot dog is
a. Elastic
b. Inelastic
c. Unitary elastic
d. Perfectly elastic
Q32.Given the following four possibilities, which
one results in an increase in total consumer
expenditure
a. Demand is unitary elastic and price falls

b. Demand is elastic and price rises
c. Demand is inelastic and price falls
d. Demand is inelastic and price rises
Q33.If elasticity demand is inelastic and
elasticity charges increases, which of the
following is likely to occur
a. Quantity demanded will fall by a relatively

large amount
b. Quantity demanded will fall by a relatively
small amount
c. Quantity demanded will rise in the short
run but rise in the long run
Q34. Suppose the demand for meals at a
medium priced restaurant is elastic. If the
management of the restaurant is considering
raising prices, it can expect a relatively
a. Large fall in quantity demanded

b. Large fall in demand
c. Small fall in quantity demanded
d. Small fall in demand
Q35.A decrease in price will result in an increase
in total revenue if
a. The percentage change in quantity

demanded < the percentage change in price
b. The percentage change in quantity
demanded > the percentage change in price
c. Demand is elastic
d. Demand is inelastic
Q36.Demand for a good will tend to be more
elastic if it exhibits which of the following
characteristics
a. It represents a small part of the consumer’s

income
b. The good has many substitutes available
c. It is a necessity( as opposed to a luxury)
d. There is little time for the consumer to
adjust to the price change
Q37.Demand for a good will tend to be more
inelastic if it exhibits which of the following
characteristics
a. The good has many substitutes

b. The good is a luxury
c. The good is a small part of the consumer’s
income
d. There is a great deal of time for the
consumer to adjust to change in the prices
Q38. If the quantity demanded of mutton
increases by 5% when the price of chicken
increases by 20%. The cross price elasticity of
demand between mutton and chicken is
a. -0.25
b. 0.25
c. -4
d. 4
Q39.The demand for Nike basketball shoes is more price-
elastic than the demand for basketball shoes as a whole. This
is best explained by the fact that
a.Nike basketball shoes are a luxury good, not a necessity.

b.Nike basketball shoes are the best made and are widely
advertised.
c.There are more complements for Nike basketball shoes than
for basketball shoes as a whole.
d.There are more substitutes for Nike basketball shoes than
for basketball shoes as a whole.
Q40. Suppose the price of movies seen at a
theater rises from rupees 120 per person to
rupees 200 per person. The theater manager
observes that the rise in price causes
attendance at a given movie to fall from 300 per
person. What is the price elasticity of demand
for movie
a. 0.5
b. 0.8
c. 1.0
d. 1.2
Q41.Suppose a department store has a sale on
its silverware. If the price of a plate setting is
reduce from rupee 300 to rupee 200 and the
quantity demanded increases from 3000 plates
setting to 5000 plates setting. What is the
price elasticity of demand for silverware
a. 0.8
b. 1.0
c. 1.50
d. 1.25
Q42.A store has a special offer on CDs. It
reduces their price from rupees 150 to rupees
100. suppose the store manager observes that
the quantity demanded increases from 700 CDs
to 1300 CDs. What is the price elasticity of
demand for CDs
a. 0.8
b. 1.0
c. 1.25
d. 1.50
Q43.If the local pizzeria raises the price of a
medium pizza from rupees 60 to rupees 100
and quantity demanded falls from 700 pizzas a
night to 100 pizzas a night, the price elasticity
of demanded for pizzas is
a. .67
b. 1.5
c. 2.0
d. 3.0
Q44.Which is characteristic of a good whose
demand is inelastic?
a. There are a large number of good substitutes

for the good for consumers.
b. The buyer spends a small percentage of total
income on the good.
c. The good s regarded by consumers as a luxury.
d. The period of time for which demand is given
is relatively long.
Q45.Most goods can be classified as normal goods
rather than inferior goods. The definition of a normal
good means that
a. the percentage change in consumer income is greater

that the percentage change in price of a normal good.
b. the percentage change in quantity demanded of the
normal good Is greater than the percentage change in
consumer income.
c.as consumer income increases, consumer purchases of
a normal good increase.
d. the income elasticity of demand is negative.
Q 46.In what type of products is elasticity
lowest ?
a. day to day use products

b. luxury goods
c. medicines
d. perishables
Q 47.In what type of products is elasticity
highest ?
a. day to day use products

b. luxury goods
c. medicines
d. perishables
Q48.When two or more commodity are
demanded for a common purpose then it is
called_______
a. Derived demand
b. Collective demand
c. Joint demand
d. Cross demand
Q49.From a time perspective, the demand
for most products is
a. less elastic in the short run and unit-

elastic in the long run.
b. less elastic in the long run and unit-
elastic in the short run.
c. more elastic in the short run than in
the long run.
d. more elastic in the long run than in
the short run.
Q50.Below the following is less elastic
demand:
a. Ed=1
b. Ed>1
c. Ed<1
d. Ed=0
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QUIZ

a. Behavior of the firm

A. Provide Ready – Make solutions to

a. Unlimited want of consumer

a . Tea and sugar

a. Variety of uses for that good

a. Remain the same

a.increase the price of the pizza.

a. Shift towards left

a. Coke will decrease

a. Positive and less than 1

a. Demand is unitary elastic and price falls

a. Quantity demanded will fall by a relatively

a. Large fall in quantity demanded

a. The percentage change in quantity

a. It represents a small part of the consumer’s

a. The good has many substitutes

a.Nike basketball shoes are a luxury good, not a necessity.

a. There are a large number of good substitutes

a. the percentage change in consumer income is greater

a. day to day use products

a. day to day use products

a. less elastic in the short run and unit-

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