Q.       Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price: A.           Equal to one   ...

Q. Identify the factor which generally keeps the price-elasticity of demand for a commodity now: A.           Variety of uses for that commodity               ...

Q.       In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be: A.           0             ...

Q. The Law of Demand, assuming other things to remain constant, establishes the relationship between: A.           Income of the consumer and the quantity of a commodity demanded by him ...

Q.       Which of the following pairs of commodities is an example of substitutes? Tea and sugar      Tea and coffeePen and ink            Shirt and trousers Answer: Tea and coffee

Q.       All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it? A.           The preferences of the individual   ...

Q.        An economic theory is: A.           An axiom         B.            A proposition ...

Q.       Contraction of demand is the result of: A.           Decrease in the number of consumers        B.            Increase in the price of the ...

Q.         Identify the aspect of taxation which is related to normative economics: A.           Incidence of tax           B.            ...

Q.         Formulation of an economic theory involves: A.           Statement of various assumptions or postulates B.            Logical deductions from the assumptions made ...

Q.         Which of the following is Microeconomics concerned with? A.           The size of national output B.            The levelof employment ...

Q.         If the demand for a commodity is inelastic, an increase in its price will cause the total expenditure of the consumers of the commodity to: A.           Remain the same       ...