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MicroEconomics MCQs

QUIZ NO. 6

Multiple Choice— Select the option that best completes the sentence or provides the answer to the question.

A good for which demand decreases with increase in income of consumer is called
Public good
Complementry good
Inferior good
Giffen good


The law of demand implies that the demand curve
slopes down
slopes up
no regular pattern
first slopes up and then slopes down


Which of the following is not correct with respect to Consumer Price Index?
It measures the average change in prices of a basket of goods
It cover professionals, self-employed, poor, unemployed and retired people in the country
CPI-U is the Consumer Price Index for Rural Consumers.
It is the most widely used measure of inflation


Which of the following is NOT related to Microeconomics ?
Demand, Supply, and Equilibrium
Behaviour of individual economic units
Unemployment
Labor Economics


Which of the following is measured by the Lorenz curve?
Illiteracy
Unemployment
Inequality of Income
Population growth rate



The condition in which market supply matches market demand is called
Equalisation
Equilibrium
Normalisation
None of the above


The statement "Supply creates its own demand" is given by
James Madison
David Ricardo
Thomas Jefferson
J.B. Say


Zero price elasticity of demand means
for a small change in price, there is a small change in demand
whatever the change in price, there is absolutely no change in demand
for a large change in price, there is a small change in demand
for a small change in price, there is a large change in demand


The law of demand states that:
as the demand rises, the price rises
as the price rises, the demand rises
as the price rises, the demand falls
as supply rises, the demand rises


A situation where the expenditure of the government exceeds its revenue is called ______.
Default Financing
Default Revenue
Budget Deficit
Deficit Revenue