CBSE Questions for Class 11 Commerce Economics Market Equilibrium Quiz 1 - MCQExams.com

Which theory is called as 'Veblenian Model'?
  • Socio-cultural theory
  • Psycho-analytic theory
  • Psychological theory
  • Economic theories
The difference between the minimum price the producer is willing to accept and the equilibrium price is called ________.
  • price
  • profit
  • producers surplus
  • consumers surplus
When there is excess demand for a commodity, the 'Law of demand' implies that __________.
  • price of the commodity falls
  • price of the commodity remains same
  • price of the commodity rises
  • quantity demanded of the commodity falls
Which of the following happens when aggregate supply exceeds aggregate demand?
  • Unemployment falls
  • Prices rise
  • Inventories accumulate
  • Unemployment develops
More goods kept for self-consumption will ____________ supply.
  • increase
  • decrease
  • expand
  • contract
Total outlay is price multiplied by quantity. 
  • True
  • False
Demand curve slopes upwards from left to right.
  • True
  • False
All desires are not demand.
  • True
  • False
The consumer is in equilibrium when __________.
  • the price line is parallel to the indifference curve
  • the price line is tangent to the indifference curve
  • the price line cuts the indifference curve
  • two indifference curves cut each other
According to the World Development Report 2006, brought out by the World Bank, countries with per capita income of Rs. 4,53,000 p.a. and above are called __________________.
  • Weak countries
  • Rich countries
  • Low income countries
  • All of them
When is a market in equilibrium?
  • Quantity demanded equals quantity supplied
  • Excess demand and excess supply are zero
  • The market clears at the equilibrium price
  • All of the above
When the law of demand operates the demand curve ____________.
  • slopes downward from left to right
  • slopes upward from left to right
  • slopes upward from right to left
  • parallel to horizontal axis
The equilibrium price clears the market: It is the price at which ________.
  • everything is sold
  • quantity demanded equals quantity supplied
  • excess demand is zero
  • B and C
Equilibrium price is the price when ________.
  • supply is greater than demand
  • supply is less than demand
  • demand is very high
  • supply is equal to demand
Graphically, an equilibrium is a point where _____.
  • supply curve is above the demand curve
  • supply curve is below the demand curve
  •  market supply curve intersects the market demand curve
  • none of these
What is dual pricing?
  • Wholesale price and Retail pricning
  • Pricing by agents and Pricing by retailers
  • Price fixed by Government and Price in open market
  • Daily prices and Weekly prices
Sellers market denotes a situation where _______.
  • commodities are available at competitive rates
  • demand exceeds supply
  • supply exceeds demand
  • supply and demand are evenly balanced
As per indifference curve and price line, a consumer will not be in equilibrium when
  • Ratios of marginal utilities and prices of the respective goods are equal
  • Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices
  • The marginal rate of substitution is equal to the ratio of prices of the two goods
  • The marginal rate of substitution is decreasing
What does equilibrium price indicate?
  • Price determined by demand and supply
  • Price determined by cost and profit
  • Price determined by cost of production
  • Price determined to maximise profit

Graphically, when supply curve moves downward, there is __________.
  • equilibrium
  • excess demand
  • excess supply
  • none of these
Graphically, when is the supply curve is below the demand curve?
  • Excess demand
  • Excess supply
  • Equilibrium
  • None of these
Any point on the demand curve below the equilibrium point shows _____.
  • equilibrium
  • excess demand
  • excess supply
  • none of the above
 ______ is determined at the intersection of the demand and supply curves of labour. 
  • Wage rate
  • Cost of production
  • Hours of labour
  • Perquisites
Graphically, when supply curve is above the demand curve, there is _____.
  • equilibrium
  • excess demand
  • excess supply
  • none of these
In the labour market, ______ are the suppliers of labour and the demand for labour comes from ______.
  • firms, households
  • households, firms
  • factories, households
  • None of the above

Graphically, when demand curve moves upward, there is __________.
  • more demand 
  • more supply
  • equilibrium
  • none of these
For each extra unit of labour, firm gets an additional benefit equal to marginal revenue times marginal product which is called __________.
  • additional revenue
  • marginal revenue from labour
  • marginal revenue product of labour
  • both B and C
The extra output produced by one more unit of labour is its _______.
  • marginal cost
  • marginal product
  • marginal revenue
  • none of the above
At a price higher than equilibrium price, there is _____.
  • excess supply
  • excess demand
  • deficient supply
  • deficient demand
When demand curve shifts leftward, and supply curve rightward the _____.
  • equilibrium price decreases
  • equilibrium quantity may increase, decrease or remain unchanged
  • either A or B
  • both A and B
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