Economics Practice MCQ Page 10

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1295   Between points b and c in Figure6, demand is
  1. elastic.
  2. inelastic.
  3. unitary elastic.
  4. perfectly elastic.
  5. perfectly inelastic.
Question: 1296   Between points c and d in Figure 6.demand is
  1. elastic.
  2. inelastic.
  3. unitary elastic.
  4. perfectly elastic.
  5. perfectly inelastic.
Question: 1298   Perfectly elastic demand curves
  1. are positively sloped.
  2. are vertical.
  3. slope slightly downward.
  4. are very steep.
  5. are horizontal.
Question: 1299   A good tends to have relatively inelastic demand if
  1. it is a large part of consumers'budgets.
  2. close substitutes are available.
  3. it is a luxury.
  4. it has no very close substitutes.
  5. it has a high price.
Question: 1301   Which of the following should have the most elastic demand ?
  1. Dole bananas.
  2. Bananas.
  3. Fresh fruit .
  4. Fresh produce .
  5. Food.
Question: 1302   The cross -price elasticity of the demand for orange juice with respect to the price of apple juice is probably
  1. negative .
  2. near infinity .
  3. zero .
  4. positive.
  5. insignificant.
Question: 1303   Economists define luxuries as goods with
  1. positive income elasticities.
  2. income elasticities greater than one.
  3. zero income elasticities.
  4. highly elasticities.
  5. negative income elasticities.
Question: 1305   Which of the following goods is most likely to be exchanged in market of local rather than national scope?
  1. University professors.
  2. Computer components.
  3. Building materials.
  4. Magazines.
  5. Jet airplanes.
Question: 1306   Which of the following is not necessarily a characteristic of a perfectly competitive market?
  1. There is perfect information about prices.
  2. All participants in the market are small relative to the size of the overall market.
  3. There are many buyers and sellers.
  4. Buyers and sellers do not know each other.
  5. A uniform price prevails throughout the market.
Question: 1308   God is bought and sold in a (n)
  1. perfectly competitive market.
  2. imperfect,national market.
  3. imperfect,international market.
  4. perfectly competitive,local market.
  5. perfectly competitive,national market.
Question: 1310   Used cars are sold in a (n)
  1. perfectly competitive,local market.
  2. perfectly competitive,national market.
  3. imperfect,national market.
  4. imperfect ,international market.
  5. imperfect,local market.
Question: 1311   A shift in the demand for a product is likely to result from a change in
  1. the product's price
  2. the price of other products which could be produced using similar resources.
  3. expectations.
  4. the price of resources used to produce it.
  5. production technology.