Economics Quiz, which are covered in this chapter, relate to the topic, Determination of Price. Economics Quiz Test contains 5 questions. Answers to Economics MCQs are available after clicking on the answer.
1.For maximum profit, the condition is:
(a) AR = AC
(b) MR = MC
(c) MR = AR
(d) MC = AC
Answer
Answer: (b) MR = MC
2.Equilibrium price may be determined through:
(a) Only demand
(b) Only supply
(c) Both demand & supply
(d) None
Answer
Answer:(c) Both demand & supply
3.If price is forced to stay below equilibrium price:
(a) Excess supply exists.
(b) Excess demand exists
(c) Either (a) or (b)
(d) Neither (a) or (b)
Answer
Answer: (b) Excess demand exists
4.An increase in supply with unchanged demand leads to :
(a) Rise in price and fall in quantity
(b) Fall in both price and quantity
(c) Rise in both price and quantity
(d) Fall in price and rise in quantity
Answer
Answer:(d) Fall in price and rise in quantity
5.In the long run:
(a) Only demand can change
(b) Only supply can change
(c) Both demand and supply can change
(d) None of these
Answer
Answer: (c) Both demand and supply can change