CBSE Questions for Class 11 Commerce Economics Market Equilibrium Quiz 6 - MCQExams.com

In a situation when productivity increases owing to improvement in technology, equilibrium price tends fall.
  • True
  • False
In a situation of war when people are fearing shortage of rice, equilibrium price of rice tends to rise.
  • True
  • False
In a state of increasing cost of production leading to a substantial cut in production, equilibrium price will fall.
  • True
  • False

If population increases, supply curve remains unchanged in the context of market equilibrium.
  • True
  • False
Market price is always equal to or greater than the support price of a commodity.
  • True
  • False
State whether the following statement is True or False.
If price falls, the supply curve will shift to the left.
  • True
  • False
Select the statement/statements, which is/ are correct about the process of issuing shares by 'private placement':
This is one among three ways in which a company raises capital in the 'primary market' through issuing shares.
Company directly negotiates to the investors, which may be financial institutions as well as individuals.
This is completely opposite to the 'public issue', in its process.
  • $$1$$ and $$2$$
  • $$2$$ and $$3$$
  • $$1$$ and $$3$$
  • $$1, 2$$ and $$3$$
Consider the following statements and select the correct code about a 'market economy'.
$$1$$. Government facilities the private sector's choice of produced goods and services.
$$2$$. Price mechanism is usually not allowed due to welfare reasons.
  • Only $$1$$
  • Only $$2$$
  • Both $$1$$ and $$2$$
  • Neither $$1$$ nor $$2$$
In a perfectly competitive economy production and consumption will both be Pareto optimal, if the economy operates at a point where?
  • There is general equilibrium
  • Output levels are below equilibrium
  • Output levels are above equilibrium
  • Consumption is less than output
A state of 'equilibrium' for a consumer means ___________________.
  • A state of saving rate equal to the growth rate of the economy for the consumer
  • A state of zero saving for the consumer and full expenditure
  • The consumer is unable to fulfill needs with the given income
  • The consumer is able to fulfill needs with a given level of income
In the table below what will be equilibrium market price?
Price (Rs)Demand (tonnes per annum)Supply (tonnes per annum)
11,000400
2900500
3800600
4700700
5600800
6500900
74001,000
83001,100
  • Rs. 2
  • Rs. 3
  • Rs. 4
  • Rs. 5
When a consumer moves from one point to another on the same supply curve it is called as -
  • Expansion or contraction in supply
  • Movement along supply curve
  • Both (A) and (B)
  • Increase or decrease in supply
Questions are based on the demand and supply diagrams in Figure. 
In the given figure,  $$D_1$$ and $$S_1$$ are the original demand and supply curves $$D_2, D_3, S_2$$ and $$S_3$$ are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph most likely to result from each change?

$$\rightarrow$$Suppose wage rate of coal mineral increases and price of natural gas decreases. (coal and natural gas are substitutes), what point in the figure is most likely to be the equilibrium price and quantity?

953354_0ccae8ca509749b299300844322cb1ab.JPG
  • Point 6
  • Point 4
  • Point 3
  • Point 2
When demand curve shifts rightward, and supply curve leftward, _______.
  • equilibrium price decreases
  • equilibrium price increases
  • equilibrium quantity decreases
  • equilibrium quantity and price may increase, decrease or remain unchanged
According to Keynesian theory of income determination, at full employment, a fall in aggregate demand lead to a ___________.
  • fall in prices of output and resources
  • fall in real gross national product and employment
  • rise in real gross national product and investment
  • rise in prices of output and resources
Questions are based on the demand and supply diagrams in Figure $$D_1$$ and $$S_1$$ are the original demand and supply curves $$D_2, D_3, S_2$$ and $$S_3$$ are possible new demand and supply curves. Starting from initial co librium point (1) what point on the graph most likely to result from each change?

$$\rightarrow$$Assume that consumer income has increased. Given that Y is an inferior good, which point in Figure is most likely to be the new equilibrium price and quantity?

953360_455ad32af2ef4bdf8b96c3d40676a1c3.JPG
  • Point 4.
  • Point 6.
  • Point 5.
  • Point 8.
When both demand and supply curve shift leftward, _____.
  • equilibrium quantity decreases 
  • equilibrium price may increase, decrease or remain unchanged
  • equilibrium quantity may increase, decrease or remain unchanged
  • equilibrium price decreases
Assume X is a normal good. Holding everything else constant, assume that income rises and the price of a factor of production also increases. What point in Figure is most likely to be the new equilibrium price and quantity?
958133_828f7deb3fd54104abecc066c6ff7453.jpg
  • Point 9
  • Point 5
  • Point 3
  • Point 2
In order to correct the situation of excess demand _____.
  • Cost of credit is raised
  • Borrowing from RBI is reduced
  • Taxes are increased
  • All of the above

When there is no excess demand or excess supply in the market, everybody is equally satisfied (or nobody suffers any shortage).
  • True
  • False
The imposition of ceiling on a monopoly's price will affect his ____________.
  • profits only
  • average revenue in the short-run only
  • equilibrium output only
  • equilibrium output and profits
We are analyzing the market for good Z. The price of a complement good, good Y, declines. At the same time, there is a technological advance in the production of good Z. Which point in figure is most likely to be the new equilibrium price and quantity?
958136_6ec5a1d67a494a9e904fe1f25234e8b7.jpg
  • Point 4
  • Point 5
  • Point 7
  • Point 8
Questions are based on the demand and supply diagrams in Figure $$D_1$$ and $$S_1$$ are the original demand and supply curves $$D_2, D_3, S_2$$ and $$S_3$$ are possible new demand and supply curves. Starting from initial co librium point (1) what point on the graph most likely to result from each change?

$$\rightarrow$$Assume that the government has just removed the 10% excise duty on good X. What point in Figure 1 is most likely to be the new equilibrium price and quantity?

953367_0f35dbac2add43f588fc0204d478572c.JPG
  • Point 6.
  • Point 4.
  • Point 7.
  • Point 8.
Questions are based on the demand and supply diagrams in Figure $$D_1$$ and $$S_1$$ are the original demand and supply curves $$D_2, D_3, S_2$$ and $$S_3$$ are possible new demand and supply curves. Starting from initial co librium point (1) what point on the graph most likely to result from each change?

$$\rightarrow$$A government research agency has published outcome of studies which say that consumption of good X could cause cancer. In addition, assume that a powerful lot has persuaded the government to give subsidy to the manufacturers of good X. what point in Figure is most likely to be the new equilibrium price and quantity?

953370_2f6113ab7e0c4f5bb8b4a87044ce6456.JPG
  • Point 6.
  • Point 5.
  • Point 3.
  • Point 9.
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