Micro Economics MCQ (GK Set-1) with Answers

Raise both the disco ticket price and the membership fee

Lower both the disco ticket price and the membership fee

Raise the disco ticket price but lower the membership fee

Lower the disco ticket price but raise the membership fee

0.4

-0.4

2.5

-2.5

Where the curve meets the price axis

Everywhere along the curve

At the mid-point of the curve

Nowhere along the curve

There are few substitutes available

Any substitutes there are have higher prices

The product accounts for a small percentage of consumer expenditure

The product is a normal good

When an economy grows, firms would prefer to be making inferior goods rather than making normal goods

If a firm notices that the price of a substitute for its product has fallen, it would prefer the CED between the products to be far from zero rather than close to zero

If a firm notices that the price of a complement for its product has risen, it would prefer the CED between the products to be far from zero rather than close to zero

If a firm’s costs increase and it has to increase the price of its output, it would prefer demand to be price inelastic rather than price elastic