Demand and Supply MCQs

By: Prof. Fazal Rehman Shamil

Solved MCQs on demand and supply(Questions Answers).

The opportunity cost of product A in terms of product B is equal to the
(A). the ratio of the rate of product B to the rate of product A.
(B). rate of product B minus the rate of product A.
(C). rate of product A minus the rate of product B.
(D). the ratio of the rate of product A to the rate of product B.
(E). None of these
MCQs Answer: (D).


A relative rate is the ratio/slope of
(A). the demand curve.
(B). the difference between one rate and another.
(C). the supply curve.
(D). one rate to another.
(E). None of these
MCQs Answer: (D).


If the rate of a pencil is $1 and the rate of a marker is $5,
(A). the money rate of a marker is 1/5 of a pencil.
(B). the money rate of a pencil is 1/5 of a marker l.
(C). the relative rate of a marker is 5 pencils.
(D). the relative rate of a pencil is 5 markers.
(E). None of these
MCQs Answer: C


If the rate of a cold drink is $2 and the rate of a Pizza is $4,
(A). the relative rate of a cold drink is 1/2 of a Pizza.
(B). the money rate of a cold drink is 2 Pizzas.
(C). the money rate of a Pizza is 2 cold drinks.
(D). the relative rate of a Pizza is 1/2 of a cold drink.
MCQs Answer: (A).


The opportunity cost of a pizza in terms of sandwiches is
(A). the rate of a pizza minus the rate of a sandwich.
(B). the ratio of the slope of the supply curve for pizzas to the slope of the supply curve for
sandwiches.
(C). the ratio of the slope of the demand curve for pizzas to the slope of the demand curve for
sandwiches.
(D). the ratio of the rate of a pizza to the rate of a sandwich.
(E). None of these
MCQs Answer: D


Desires, as different to demands,
(A). are the unlimited desires of the consumer
(B). are the products the consumer plans to acquire.
(C). depend on the rate.
(D). are the products the consumer has acquired.
(E). None of these
MCQs Answer: (A).


According to the law of demand, other things remaining the same as the
(A). demand for pizzas increases, the rate of a pizza will fall.
(B). rate of a pizza rises, the number of pizzas demanded will decrease.
(C). income increases, the number of pizzas demanded will increase.
(D). rate of a pizza rises, the number of pizzas demanded will increase.
(E). None of these
MCQs Answer: B


According to the law of demand, the amount of a product demanded varies
(A). inversely with its rate.
(B). directly with the population.
(C). directly with income.
(D). inversely with the rate of substitute products.
(E). None of these
MCQs Answer: A


What is the guarantee of Scarcity?
(A). desires will exceed demands.
(B). demands will be equal to desires.
(C). demands will exceed desires.
(D). most demands will be satisfied.
(E). None of these
MCQs Answer: A


What is the demanded quantity?
(A). always equal to the equilibrium quantity.
(B). independent of the rate of the product.
(C). independent of consumers’ buying plans.
(D). the amount of a product that consumers plan to purchase at a specific rate.
(E). None of these
MCQs Answer: (D).


According to the law of demand, other things remaining the same, the higher the rate of a product, the
(A). lesser is the demand for the product.
(B). larger is the demand for the product.
(C). larger is the quantity of the product demanded.
(D). lesser is the quantity of the product demanded.
(E). None of these
MCQs Answer: (D).


Which of the following affects customer’s buying plans and differs moving along a demand curve?
(A). preferences
(B). the rate of the product
(C). income
(D). the rates of related products
(E). None of these
MCQs Answer: B


According to the law of demand, if nothing else changes, there is
A) a negative association between the rate of a product and the quantity demanded.
B) a positive association between the rate of a product and the quantity demanded.
C) a linear association between the rate of a product and the quantity demanded.
D) an exponential association between the rate of a product and the quantity demanded.
MCQs Answer: A)


Which of the following affects customer’s buying plans and differs moving along a demand curve?
A) preferences
B) the rate of the product
C) income
D) the rates of related products
MCQs Answer: B


Which is consistent with the law of demand?
(A). A decrease in the rate of a gallon of honey causes a decrease in the quantity of honey demanded.
(B). An increase in the rate of a pencil causes an increase in the number of pencils demanded.
(C). An increase in the rate of sugar causes a decrease in the quantity of sugar demanded.
(D). A decrease in the rate of cold drink causes no change in the quantity of cold drink demanded.
(E). None of these
MCQs Answer: (C).


According to the law of demand, if nothing else changes, there is
(A). a linear association between the rate of a product and the quantity demanded.
(B). a positive association between the rate of a product and the quantity demanded.
(C). a negative association between the rate of a product and the quantity demanded.
(D). an exponential association between the rate of a product and the quantity demanded.
(E). None of these
MCQs Answer: C

 

Prof. Fazal Rehman Shamil