Microeconomics Practice Test - 3: Measurement of Elasticities
Click on the correct option. Text colour will change into green if your chosen option is corret and if it is wrong, it will change into red:
- If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is
- greater than 1
- equal to 1
- smaller than 1
- zero
- If the quantity of a commodity demanded remains unchanged as its price changes, the coefficient of price elasticity of demand is
- greater than 1
- equal to 1
- smaller than 1
- zero
- Arc elasticity gives a better estimate of point elasticity of a curvilinear demand curve as
- the size of the arc becomes smaller
- the curvature of the demand curve over the arc becomes less
- both of the above
- neither of the above
- If a straight-line demand curve is tangent to a curvilinear demand curve, the elasticity of the two demand curves at the point of tangency is
- the same
- different
- can be the same or different
- it depends on the location of the point of tangency
- An increase in the price of a commodity when demand is inelastic causes the total expenditures of consumers of the commodity to
- increase
- decrease
- remain unchanged
- any of the above
- A fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditures on the commodity to
- increase
- decrease
- remain unchanged
- any of the above
- A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased
- rises
- falls
- remains unchanged
- any of the above
- If the income elasticity of demand is greater than 1, the commodity is
- a necessity
- a luxury
- an inferior good
- a nonrelated good
- If the amounts of two commodities purchased both increase or decrease when the price of one changes, the cross elasticity of demand between them is
- negative
- positive
- zero
- 1
- If the amount of a commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them is
- negative
- positive
- zero
- 1
- es for a positively sloped straight-line supply curve that intersects the price axis is
- equal to zero
- equal to 1
- greater than 1
- constant
- Which of the following elasticities measure a movement along a curve rather than a shift in the curve?
- The price elasticity of demand
- The cross elasticity of demand
- The income elasticity of demand
- The price elasticity of supply
No comments:
Post a Comment