Plus Two Economics – Chapter 5: Online Practice Exam in English

Chapter 5

# Question

1) The price at which demand and supply are equal is called ………….

Equilibrium quantity

Equilibrium price

Price ceiling

# Question

2) The situation in which demand is higher than supply

Excess demand

Excess supply

Equilibrium

None of these

# Question

3) The price, when the government imposes lower limit on the price of a good or service, is called …………

Price ceiling

Equilibrium price

Floor price

None of these

# Question

4) Supply curve remaining unchanged, when demand curve shifts rightward;the equilibrium quantity ………..

Increases

Decreases

Become constant

None of these

# Question

5) In a perfectly competitive market under free entry and exit, the equilibrium price is always equal to ……:……

Minimum of AC

Maximum of AC

Equal to AC

Minimum of MC

# Question

6) Selling goods at a higher price than the price fixed by government is called ……….

Hoarding

Black market

Floor price

Price ceiling

# Question

7) The government imposed upper limit on the price of a good or service is called

Price floor

Equilibrium price

Price ceiling

Market price

# Question

8) qd = 20 – 2P, qs = 5 + 3P, then equilibrium price is

20

2

5

3

# Question

9) What is the equilibrium quantity in the equation, qd = 20 – 2P, qs = 5 + 3P

14

10

20

24

# Question

10) Match the following

 A B a Price higher than equilibrium price i Excess demand b Equilibrium price ii Excess supply c Price lower than equilibrium price iii Demand = Supply

a-ii, b-iii, c-i

a-i, b-iii, c-ii

a-i, b-ii, c-iii

a-iii, b-ii, c-i

# Question

11) Long run price under perfect competition will be equal to

Average Cost

Marginal Cost

Fixed Cost

None of these

# Question

12) Imposition of the price ceiling below the equilibrium price leads to

Deficit demand

Deficit supply

Excess demand

Excess supply

# Question

13) From the list of goods given below, find out the one which cannot be provided through market mechanism.

Private goods

Public goods

Merit goods

Club goods

# Question

14) Imposition of price floor leads to

Excess demand

Excess supply

Normal demand

Any of the above

# Question

15) Free entry and of firms imply that the market price will always be equal to

Maximum of AC

Minimum of AC

Minimum of MC

Any of these

# Question

16) When there is an increase in demand, the demand curve

Shifts reightward

Shifts leftward

Shifts downward

Shifts upward

Excess demand

Long queue

Black market

All of the above

# Question

18) Identify the below given diagram

Price ceiling

Floor price

Excess demand

None of these

# Question

19) Floor price is to protect the interests of the

Producers

Consumers

Both of the above

None of the above

# Question

20) The impact of floor price is

Excess demand

Excess supply

Long queue

No impact

# Question

21) Identify the below given diagram

Price Ceiling

Floor Price

Excess Supply

None of the above

# Question

22) Maximum price fixed for a product by the governtment is called

Floor price

Price ceiling

Upper price

Lower price

# Question

23) Market equilibrium of a commodity shows

Excess demand

Quantity demanded is greater than quantity supplied

Quantity demanded equals quantity supplied

Excess supply

# Question

24) From the list of goods given below, find out the one which cannot be provided through market mechanism ?

Private goods

Public goods

Merit goods

Club goods

# Question

25) A firm will demand labour upto the point where

Demand = Supply

Supply = Demand

W = MRPL

None of these

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