7/22/2019 Micro Economics Quiz MCQs

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1. Which of the following results in a shifting of the demand curve?

a) An increase in the tax on cigarettes leading to their fall in consumption.b) A rise in the electricity charges leading to a lesser consumption.

c) Fall in the sales of Diwali crackers due to heavy rains and floods before Diwali.

d) All of the above

2. Which of the following has the lowest elasticity of supply?

a) Luxury items

b) Necessitiesc) Perishable goods

d) Items that have the least budgetary allocation.

3. Which of the following statements are true?

a) Elasticity of demand is constant throughout the demand curve.

b) Elasticity of demand decreases as one goes down the demand curve.c) Elasticity of demand increases as one goes down the demand curve.

d) None of the above

4. The 3 characteristics of Economic goods are:

a) scarce, transferable and nonperishable

b) scarce, moveable and nonperishable

c) scarce, moveable and has utilityd) scarce, transferable and has utility

5. In which of the following cases will total revenue increase?a) When demand is elastic and price rises.

b) When demand is elastic and price decreases.

c) When demand is inelastic and price decreases.d) When demand is inelastic and price rises.

6. For complementary goods, the cross elasticity of demand is

a) Elasticb) Inelastic

c) Positive

d) Negative

7. The position and the shape of any indifference curve for a particular consumer are governed by

a) His tastes and by the amount of income defining the budget constraint.b) Prices of the goods.

Course Title Managerial Economics

Instructor Prof. Leena Mary Eapen

Duration 10 minutes

Maximum Marks 10

Date & Time 17/1/12 10.00-10.10pm

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Indian Institute of Management Kozhikode

Quiz 1

7/22/2019 Micro Economics Quiz MCQs

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c) His/her tastes and preferences.

d) All of the above

8. If proportion of income spent on a good is significant, PED for the good tend to bea) Elastic

b) Inelastic

c) Unit elasticd) Relatively inelastic

9. Demand for a product decreases from 5000 units to 4000 units when the price is increased from Rs. 50

to Rs. 60. PED for the product isa) 4

b) 0.04

c) 0.01d) 1

10. To manufacture a PC, you require a keyboard and a monitor. If you measure keyboard on the X-axisand a monitor on the Y-axis, the shape of the isoquant will be

a) L- shaped

b) Convex to the originc) Concave to the origin

d) Downward sloping straight line

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