MCQ Academy - English
Free Online MCQ Practice Tests in English
Popular Quiz Papers
Latest Quizzes
The demand for good X has been estimated to be lnQXd = 0 – 2.5 lnPX + 4 lnPY + lnM . The advertising elasticity of good X is
Correct answer(s):
- 0.0
The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM. The income elasticity of good X is
Correct answer(s):
- 1.0
The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM.The cross price elasticity of demand between goods X and Y is
Correct answer(s):
- 4.0
The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM.The own price elasticity of good X is
Correct answer(s):
- -2.5
Non-fed ground beef is an inferior good. In economic booms, grocery managers should
Correct answer(s):
- Reduce their orders of non-fed ground beef
Suppose the income elasticity for transportation is 1.8. Which of the following is anincorrect statement?
Correct answer(s):
- Expenditures on transportation will fall less rapidly than income falls
Since most consumers spend very little on salt, a small increase in the price of salt will
Correct answer(s):
- Not reduce quantity demanded by very much
If the short-term own price elasticity for transportation is estimated to be -0.6, then long-term own price elasticity is expected to be
Correct answer(s):
- Less than -0.6
Demand tends to be
Correct answer(s):
- More inelastic in the short-term than in the long-term
The demand for food (a broad group) is more
Correct answer(s):
- Inelastic than the demand for beef (specific commodity)
If there are few close substitutes for a good, demand tends to be relatively
Correct answer(s):
- Inelastic
Which of the following is not the important factor that affects the magnitude of the own price elasticity of a good?
Correct answer(s):
- Supply of the good
When a demand curve is linear,
Correct answer(s):
- Demand is elastic at high prices
The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, good X is
Correct answer(s):
- A normal good
The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the income elasticity of good X is
Correct answer(s):
- 0.82
The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, goods X and Y are
Correct answer(s):
- Substitutes
The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the cross-price elasticity between goods X and Y is?
Correct answer(s):
- 0.008
The demand for good X is estimated to be QXd = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, we know that the demand for good X is
Correct answer(s):
- Inelastic
The demand for good X is estimated to be QXd = 10,000 – 4PX + 5PY + 2M + AX, where PXis the price of X, PY is the price of good Y, M is income and AX is the amount of advertisingon X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000units. What is the own-price elasticity of demand for good X?
Correct answer(s):
- -0.003
The demand for good X is estimated to be QXd = 10,000 – 4PX + 5PY + 2M + AX where PX is the price of X, PY is the price of good Y, M is income and AX is the amount ofadvertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, andAX = 1,000 units. What is the quantity demanded of good X?
Correct answer(s):
- 61,300