(A) Increase in VAT
(B) Increase in excise duty
(C) Increase in import duty
(D) Reduction in levies
Tag: Economics Mcqs With Answers
An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B?
(A) 4
(B) 2
(C) 3
(D) 1
Select the odd one?
(A) Consumer taste
(B) Price of the goods
(C) Change in population
(D) Increase in price of product
Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution?
(A) Unity
(B) Less than 1
(C) More than 1
(D) Zero
Goods which are perfect substitute of each other will have rate of substitution?
(A) Unity
(B) Less than 1
(C) More than 1
(D) Zero
A supply curve passing through the origin will have elasticity?
(A) Less than 1
(B) More than 1
(C) Just One
(D) Zero
When the price of complementary products falls, the demand of the other product will?
(A) Fall
(B) Increases
(C) Remain stable
(D) Drops by 25%
If demand of coffee increases by 10% with 20% decline in the price of sugar we can say that?
(A) Cross price elasticity of demand is negative and both the products are complementary to each other;
(B) Cross price elasticity of demand is negative and the goods are substitute;
(C) Cross price elasticity is positive and the products are complementary to each other ;
(D) None of these