Economics grade 12 revision MCQ

A commodity having multiple uses is termed as this.

• Composite demand

• Derived demand

• Expost demand

• Ex ante demand

For these types of goods, demand falls as income of consumers increases

• Inferior goods

• Inexpensive goods

• Superior goods

• Normal goods

What is price effect ?

• Income + substitution effect

• only income effect

• only substitution effect

• Income + giffens effect

Indifference curve measure utility in the following manner:

• Cardinal

• Ordinal

• Both cardinal and ordinal

• Non of the above

An indifference curve is always __________ to the origin.

• Convex

• Concave

• parallel

If a commodity has more substitutes, it will be more...

• elastic

• in elastic

• no change in elasticity

What is paradox of plenty ?

• Bumper crop reduces the selling price

• bumper crop increases the selling price

• Bumper crop keeps the selling price constant

• non of the above

Complementary goods has this type of cross elasticity.

• Negative

• positive

• zero

A supply curve for normal goods always has this type of slope.

• positive

• negative

• constant

Rare auction goods will have this type of elasticity of supply

• Perfectly inelastic

• Perfectly elastic

• relatively elastic

• relatively in elastic