Micro Economics MCQ (GK Set-1) with Answers

Those with a PES close to 0.0 and an IED well above 0.0

Those with a PES close to 0.0 and an IED well below 0.0

Those with a PES well above 1.0 and an IED well above 0.0

Those with a PES well above 1.0 and an IED well below 0.0

0.5

-0.5

2

-2

PES is infinity all along any horizontal supply curve

PES is 1.0 all along any supply curve which passes through the origin

PED is zero all along any vertical demand curve

PED is -1.0 along any demand curve where spending would be the same at each price

The producers are close to full capacity

One or more of the key intermediate products needed to make the product are themselves items with an inelastic supply

Consumers need very little time to respond fully to price changes

One type of labour used by the producers may be in inelastic supply

Price elasticity of demand is negative for most products

Price elasticity of supply is positive for most products

Income elasticity of demand is positive for normal goods

Cross elasticity of demand is positive between complements