Economics Concepts of demand and supply Test Welcome to your Economics Concepts of demand and supply Test Name Email Which of the following is a private good ? (a) A good that is available to everyone to consume, regardless of who pays for it and who does not. (b) Spillover benefits (c) Non-rival in consumption and non-excludable (d) A good that is consumed by a single person or h None What kind of relationship exists between income and demand in case of normal goods ? (a) There is no impact of income on demand (b) Sometime there is a direct and sometimes an inverse relationship (c) There is a direct relationship (d) There is an inverse relationship None As per the law of demand, if all other commodities remain the same, then the relation between the demand and price of a commodity is (a) Negative (b) No Relation (c) May be Positive or Negative (d) Positive None What is the change in total utility due to consumption of one additional unit of an item called ? (a) Marginal Utility (b) Maximum Utility (c) Minimum Utility (d) Change Utility None For economists, ______ refers to the amount of a product or service that people are both willing and able to buy. (a) Demand (b) Supply (c) Price (d) Income None _______ is a type of good for which demand increases as its price rises. (a) Giffen Good (b) Capital Good (c) none (d) Consumer Good None What would happen to the demand curve when there is an increase in the price of substitute products? (a) Outward shift (b) Remains constant (c) Initially inward and then after a period outward shift (d) Inward shift None What effect will a decrease in demand and an increase in supply have on equilibrium price? (a) Equilibrium price will fall| (b) Equilibrium price will rise (c) Equilibrium price will be constant (d) Sometimes price will rise and sometimes it will None The demand for a commodity or service which is a consequence of the demand for something else is called ______. (a) Income Demand (b) Direct Demand (c) Composite Demand (d) Derived Demand None In economic terms, what do we mean by ‘Intermediate Goods’? (a) Goods sold between industries for resale or production of other goods. (b) Goods in transit before reaching the consumers. (c) Price of goods without GST. (d) Fixed assets used by manufacturers. None Time's up
