Micro Economics MCQ (GK Set-1) with Answers

Micro Economics MCQ (GK Set-1) with Answers

101) If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered, once the fish are caught the fisherman’s price elasticity of supply for fresh fish is

Answer is:

zero

102) A decrease in supply (shift to the left) will increase total revenue in that market if

Answer is:

demand is price inelastic

103) If an increase in the price of a good has no impact on the total revenue in that market, demand must be

Answer is:

unit price elastic

104) Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to

Answer is:

reduce total revenue to farmers as a whole because the demand for food is inelastic.

105) If supply is price inelastic, the value of the price elasticity of supply must be

Answer is:

less than 1

18
19
20
21
22
23
24