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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?

A Rs 0 per month

B Rs 30 per month

C Rs 40 per month

D Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0

Review Detailed Answer

Correct Answer: Rs 30 per month

Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?

A 1.4

B 0.66

C 0.75

D 2.0

Review Detailed Answer

Correct Answer: 1.4

If supply is price inelastic the value of the price elasticity of supply must be ?

A infinite

B Zero

C less than 1

D none of these

Review Detailed Answer

Correct Answer: less than 1

If an increase in the price of a good has no impact on the total revenue in that market demand must be ?

A all of these answers

B price inelastic

C unit price elastic

D price elastic

Review Detailed Answer

Correct Answer: unit price elastic

If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ?

A zero

B infinite

C one

D unable to be determined form this information

Review Detailed Answer

Correct Answer: zero

If the cross-price elasticity between two goods is negative the two goods are likely to be ?

A substitutes

B complements

C necessities

D luxuries

Review Detailed Answer

Correct Answer: complements

Which of the following would cause a demand curve for a good to be price inelastic ?

A The good is luxury

B There are a great number of substitutes for the good

C The good is a necessity

D The good is an inferior good

Review Detailed Answer

Correct Answer: The good is a necessity

in general a flatter demand curve is more likely to be ?

A price elastic

B unit price elastic

C none of these answers

D price inelastic

Review Detailed Answer

Correct Answer: price elastic

If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?

A income inelastic

B price inelastic

C price elastic

D unit price elastic

Review Detailed Answer

Correct Answer: price elastic

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If supply is price inelastic the value of the price elasticity of supply must be ?

If an increase in the price of a good has no impact on the total revenue in that market demand must be ?

If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman’s price elasticity of supply for fresh fish is ?

If the cross-price elasticity between two goods is negative the two goods are likely to be ?

Which of the following would cause a demand curve for a good to be price inelastic ?

in general a flatter demand curve is more likely to be ?

If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?