Economics Practice MCQ Page 9

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: 1209   The coefficient of the price elasticity of demand is
  1. negative as long as the law of demand holds.
  2. always negative or zero .
  3. always positive or zero.
  4. positive only when the supply curve slopes upward.
  5. sometimes positive and sometimes negative.
Question: 1211   Demand is elastic when
  1. the coefficient of elasticity is great than zero.
  2. the coefficient of elasticity is less than one .
  3. the coefficient of elasticity is negative.
  4. the coefficient of elasticity is greater than one.
  5. the demand curve is steeper than forty -five degrees.
Question: 1282   If the demand curve is inelastic.then
  1. it may be nearly vertical.
  2. sellers will receive less for the good if they reduce supply.
  3. quantity demanded is very sensitive to income .
  4. demand is hardly affected by income .
  5. close substitutes for the good are abundant.
Question: 1283   If price rises from $5,then,according to the midpoints formula ,the percentage change is
  1. 66.7 percentage.
  2. -40 percentage.
  3. 25 percentage.
  4. 40 percentage.
  5. 50 percentage.
Question: 1284   If the demand for a good is inelastic and its price rises from $4 due to a shift in supply ,then quantity demanded
  1. increases.
  2. decreases by less than 33 percent.
  3. decreases by less than 40 percent.
  4. decreases by more than 40 percent.
  5. decreases by more than 50 percent.
Question: 1286   If the demand for a good is inelastic and its price rises from $6 due to a shift in supply ,then sellers' total revenue
  1. increases.
  2. decreases by less than 33 percent.
  3. decreases by less than 40 percent.
  4. decreases by more than 40 percent.
  5. decreases by more than 50 percent.
Question: 1287   If the price of a good falls from 90 cents to 70 cents and quantity demanded increases from 35 units,then the coefficient of the price elasticity of demand is
  1. 0.5.
  2. 0.25.
  3. 1.
  4. 0.78.
  5. -1.
Question: 1290   If the coefficient of the price elasticity of the demand for grapefruit is 1.5 ,and the price of grapefruit rises from $8 per case to $12.then the quantity demanded will
  1. decrease by 75 percent.
  2. decrease by 6 percent.
  3. decrease by 50 percent.
  4. decrease by 40 percent.
  5. decrease by 60 percent.
Question: 1291   Moving down along a linear demand curve.
  1. demand becomes less elastic.
  2. demand does not change.
  3. demand has unitary elastic.
  4. demand becomes more elastic.
  5. demand approaches perfect elasticity.
Question: 1293   Between points a and b in Figure6, demand is
  1. elastic.
  2. inelastic.
  3. unitary elastic.
  4. perfectly elastic.
  5. perfectly inelastic.
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.