11th Grade > Economics - 1
MARKET EQUILIBRIUM MCQs
Total Questions : 28
| Page 1 of 3 pages
Answer: Option C. -> By both demand and supply
:
C
Price of a product is determined in a free market by both demand and supply.
:
C
Price of a product is determined in a free market by both demand and supply.
Answer: Option A. -> True
:
A
In the long-run, when there is free entry and exit, the market price always tend to approach the break-even price and is constant. This means a horizontalsupply. Hence, the equilibrium price would be equal to the shut-down price.
:
A
In the long-run, when there is free entry and exit, the market price always tend to approach the break-even price and is constant. This means a horizontalsupply. Hence, the equilibrium price would be equal to the shut-down price.
Answer: Option A. -> True
:
A
True.Economic efficiency, or efficiency, occurs when all goods and services in the economy are produced and consumed at their respective socially optimal levels.
:
A
True.Economic efficiency, or efficiency, occurs when all goods and services in the economy are produced and consumed at their respective socially optimal levels.
Answer: Option B. -> False
:
B
False. When Ownership, Production, and Allocation are mostly controlled in an economy, such a system of organizing the economy is called Socialism.
:
B
False. When Ownership, Production, and Allocation are mostly controlled in an economy, such a system of organizing the economy is called Socialism.
Answer: Option A. -> True
:
A
True.Lost gains from trade is called deadweight loss.
:
A
True.Lost gains from trade is called deadweight loss.
Answer: Option A. -> True
:
A
True.When both demand and supply decrease, the equilibrium quantity falls but the change in equilibrium price is ambiguous.
:
A
True.When both demand and supply decrease, the equilibrium quantity falls but the change in equilibrium price is ambiguous.
Answer: Option B. -> the quantity of a good that consumers would like to purchase at different prices.
:
B
The market demand curve showsthe quantity of a good that consumers would like to purchase at different prices.
:
B
The market demand curve showsthe quantity of a good that consumers would like to purchase at different prices.
Answer: Option C. -> is at a level where there is neither a shortage nor a surplus
:
C
Market equilibrium refers to a situation in which market priceis at a level where there is neither a shortage nor a surplus.
:
C
Market equilibrium refers to a situation in which market priceis at a level where there is neither a shortage nor a surplus.
Answer: Option B. -> is an important idea for predicting economic changes
:
B
Equilibriumis an important idea for predicting economic changes.Economic equilibriumis defined as the point at which supply equals demand for a product, with theequilibriumprice existing where the hypothetical supply and demand curves intersect.
:
B
Equilibriumis an important idea for predicting economic changes.Economic equilibriumis defined as the point at which supply equals demand for a product, with theequilibriumprice existing where the hypothetical supply and demand curves intersect.
Answer: Option D. -> a decrease in supply
:
D
If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has beena decrease in supply.
:
D
If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has beena decrease in supply.
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