Economics Mcqs
A public good will ?

A. Be under provided in the free market
B. Be over provided in the free market
C. Not be provided in the free market
D. Has no opportunity cost

If the price in a market is fixed by the government below equilibrium ?

A. There is excess equilibrium
B. There is excess supply
C. There is excess demand
D. There is equilibrium

A reduction in the costs of production will ?

A. Lead to a movement along the supply curve
B. Shift the demand curve
C. Shift the supply curve
D. Lead to an extension of supply

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?

A. An fall in demand
B. An increase in supply
C. Improvements in production technology
D. An increase in demand

A movement along the demand curve may be caused by ?

A. A change in income
B. A change in the number of buyers
C. A change in advertising
D. A shift in supply

A movement along the supply curve may be caused by ?

A. A change in technology
B. A change in the number of producers
C. A shift in demand
D. A change in costs

Which best describes consumer surplus ?

A. The price consumers are willing to pray for a unit
B. The cost of providing a unit
C. The profits made by a firm
D. The difference the price a consumer pays for an item and the price he/she is willing to pay

A shift is demand will have more effect on price than quantity if ?

A. The price elasticity of supply is price inelastic
B. The price elasticity of supply is price elastic
C. The price elasticity of supply is perfectly elastic
D. The price elasticity of supply is infinity

If the price of good is equal to the equilibrium price ?

A. There is a shortage and the price will fall
B. The quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
C. There is surplus and the price will rise
D. There is a shortage and the price will rise

A decrease (leftward shift) in the supply for a good will tend to cause ?

A. An increase in the equilibrium price and quantity
B. A decrease in the equilibrium price and an increase in the equilibrium quantity
C. None of these answers
D. A decrease in the equilibrium price and quantity.