MCQ Academy - English
Free Online MCQ Practice Tests in English
Popular Quiz Papers
Latest Quizzes
The demand for good X has been estimated by QX d =12 – 3PX + 4PY. Suppose that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own price elasticity.
Correct answer(s):
- -0.3
Suppose the demand for a product is QX d = 10 – lnPX then product X is
Correct answer(s):
- Unitary elastic
As we move down along a linear demand curve, the price elasticity of demand becomes more
Correct answer(s):
- Inelastic
A price elasticity of zero corresponds to a demand curve that is:
Correct answer(s):
- Vertical
Consider a market characterized by the following demand and supply conditions: PX = 50 – 5QX and PX = 32 + QX. The equilibrium price and quantity are, respectively,
Correct answer(s):
- $35 and 3 units.
Consider a market characterized by the following demand and supply conditions: PX = 15 – 2QX and PX = 3 + 2QX. The equilibrium price and quantity are, respectively,
Correct answer(s):
- $9 and 3 units.
An excise tax of $1.00 per gallon of….
Correct answer(s):
- by more than $1.00 per gallon.
If A and B are complementary goods, a decrease in the price of good A would:
Correct answer(s):
- lead to an increase in demand for B.
If A and B are substitute goods, a decrease in the price of good A would:
Correct answer(s):
- lead to a decrease in demand for B.
If A and B are substitute goods, an increase in the price of good A would:
Correct answer(s):
- lead to an increase in demand for B.
Other things held constant, the lower the price of a good
Correct answer(s):
- the lower the producer surplus.
Other things held constant, the higher the price of a good
Correct answer(s):
- the greater the producer surplus.
Other things held constant, the lower the price of a good
Correct answer(s):
- the greater the consumer surplus.
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price floor of $9 will result in a
Correct answer(s):
- surplus of 30 units.
Suppose supply decreases and demand increases. What effect will this have on the quantity?
Correct answer(s):
- it may rise or fall.
Suppose supply decreases and demand increases. What effect will this have on the price?
Correct answer(s):
- it will rise.
Suppose both supply and demand increase. What effect will this have on the equilibrium quantity?
Correct answer(s):
- it will rise.
Suppose both supply and demand increase. What effect will this have on the equilibrium price?
Correct answer(s):
- it may rise or fall.
The seller side of the market is known as the:
Correct answer(s):
- supply side.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.
Correct answer(s):
- $1