Category: Economics Mcqs

(A) Is a good that people buy more of it as their incomes fall.
(B) Is a good which people buy more of as its price increases.
(C) Has a vertical demand curve.
(D) Is another name for a free good.

(A) The price elasticity coefficient is less than 1.
(B) Total revenue decreases if price decreases.
(C) Buyers are relatively insensitive to price changes.
(D) The percentage change in quantity is greater than the percentage change
in price.

(A) Increase in long-run aggregate supply
(B) Decrease in long-run aggregate supply
(C) Increase in short-run aggregate supply
(D) Decrease in short-run aggregate supply

(A) A positive question is one for which the answer is yes while normative question is
one for which the answer is no.
(B) Positive questions concern matters of opinion, while normative questions
concern matters of fact.
(C) Positive questions concern matters of fact, while normative questions
concern matters of opinion.
(D) Economic theory can answer normative questions, but not positive ones.

(A) The establishing of an overall view of the operation of the economic system.
(B) A detailed examination of specific economic units which comprise the
economic system.
(C) The aggregate or total levels of income, employment and output.
(D) None of the given option

(A) Downward sloping
(B) Upward sloping
(C) Vertical at the full-employment level
(D) Horizontal at the full-employment level

(A) Scarcity
(B) The price level
(C) Aggregate expenditures
(D) Foreign trade

(A) Aggregate Demand curve
(B) Aggregate Supply curve
(C) Philips curve
(D) Production possibilities curve