What does a decrease, or leftward shift, in the supply of a good tend to cause?
Correct answer B. An increase in the equilibrium price and a decrease in the equilibrium quantity
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Economics MCQs
Page 69 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 69 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
What is the statistical study of human populations, covering size, density, location, age, gender, race and occupation, called?
Correct answer A. Demography
Both the supply of and demand for personal computers increase, but supply rises by more than demand. What should we expect in the market for personal computers?
Correct answer D. The equilibrium quantity to rise and the equilibrium price to fall
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A frost wipes out much of Florida’s orange crop while consumer tastes shift towards orange juice. What happens to the equilibrium price and quantity of orange juice?
Correct answer E. Price will increase, quantity is ambiguous
If buyers and sellers of wheat both expect its price to rise soon, what should happen to today’s equilibrium price and quantity of wheat?
Correct answer D. Price will increase, quantity is ambiguous
What normally happens in a market when demand increases?
Correct answer B. A higher equilibrium price and output
What will a fall in production costs do in a market?
Correct answer C. Shift the supply curve
With a normal downward sloping demand curve and upward sloping supply curve, what could raise the equilibrium price?
Correct answer A. An increase in demand
What can cause a movement along the demand curve?
Correct answer B. A shift in supply
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What can cause a movement along the supply curve?
Correct answer D. A shift in demand
Which statement best defines consumer surplus?
Correct answer D. The difference between the price a consumer pays for an item and the price he/she is willing to pay
A shift in demand will change price by more than quantity when supply is which of the following?
Correct answer C. Price inelastic
A shift in supply will change price by more than quantity when the price elasticity of demand is which of the following?
Correct answer A. The price elasticity of demand is –0.2
What effect should a rise in demand for a product have on the market equilibrium?
Correct answer D. Increase equilibrium price and quantity
How does a free market deal with a pure public good?
Correct answer B. Not be provided in the free market
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What results when the government fixes a market price below the equilibrium level?
Correct answer A. There is excess demand
How are merit goods supplied in a free market economy?
Correct answer A. Under provided in the free market economy
Why might farmers’ total earnings fall when supply in an agricultural market increases?
Correct answer C. Demand is price inelastic
What tends to happen in a free market when a good creates a positive externality?
Correct answer B. There is under-consumption in the free market
When does nationalisation take place?
Correct answer A. The government takes control of an industry