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Introduction To Economics

The retail price index is used to………………?

A. construct price lists
B. compare shop prices
C. measure changes in the cost of living
D. None of the above

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If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by …………….?

A. 20%
B. 2%
C. 12%
D. 16%

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On a graph, a positive linear relationship……………….?

A. moves down to the right
B. moves up to the left
C. moves up to the right
D. moves down to the left

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When we know the quantity of a product that buyers wish to purchase at each possible price we know………….?

A. Demand
B. Supply
C. Excess demand
D. Excess supply

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The equilibrium price clears the market it is the price at which ……………..?

A. Everything is sold
B. Buyers spend all their money
C. Quantity demanded equal quality supplied
D. Excess demanded equals quantity
E. C and D

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…….. and ……….. do not directly affect the demand curve ?

A. the price of related goods consumer income
B. consumer incomes, tastes
C. the costs of production bank opening hours
D. the price of related goods preferences

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A demand curve can shift because changing ?

A. incomes
B. prices of related goods
C. tastes
D. all of the above

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If a price increase of good A increases the quantity demanded of good B, then good B is a…………….?

A. substitute good
B. complementary good
C. bargain
D. inferior good

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An increase in consumer income will increase demand for a ……… but decrease demand for a?

A. substitute good, inferior good
B. normal good inferior good
C. inferior good normal good
D. normal good, complementary good

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The basic economic problems will not be solved by ?

A. Market forces
B. Government intervention
C. A mixture of government intervention and the free market
D. The creation of unlimited resources

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