Mock TestBank Promotion Mock Test Bank Promotion Mock Test -08 (Focus on Economics) By gyanedu15 - February 6, 2021 0 32 Facebook Twitter Pinterest WhatsApp Welcome to your Bank Promotion Mock Test-08 Your Name Your Email Only one of the five options given with the following questions is correct. Please identify the correct answer by putting a tick mark against it 1. According to the Law of Demand,a) the demand of goods and services depends on the national income of a country.b) demand of a commodity depends upon its utilityc) as the price of a good increases the demand for it decreases and vice –versad) demand for a good is independent of its price in most situations.e) None of the above 2. The goods which do not obey the law of demand i.e where demand goes up with the increase in prices are calleda) Inferior goodsb) Giffen goodsc) Special goodsd) Inelastic goodse) None of the above 3. Inferior goods are thosea) in which quality is less than the standard specified.b) where demand decreases as the income of a person increasesc) where raw materials used are of inferior qualityd) which consumers refuse to buy even at abnormally low pricese) None of the above 4. The law of demand establishes a relationship between price and demand qualitatively. The quantitative measurement of the same is done by the concept ofa) Indifference curveb) Consumer surplusc) Elasticity of demandd) Marginal rate of substitutione) None of the above 5. Elasticity of demand measures the :a) change in demand of a good due to changes in tastes and preferences of the consumer.b) the degree of responsiveness in the quantity demanded of a product to the change in the price of the same.c) change in demand of a commodity in an economy due to change in national incomed) the degree to which the consumers prefer a particular good w.r.t competing goodse) none of the above 6. Read the following statements carefully and answer the question that follows : (i) When quantity demanded of a commodity decreases less than the proportion in which its price rises such a good is said to have inelastic demand. (ii) When quantity demanded of a commodity decreases more than the proportion in which the price rises such a good is said to have elastic demand (iii) When the proportion change in quantity demanded of a commodity is in equal proportion to the change in its price , such a commodity is said to have unit elasticity. Please indicate which of the following answers is correcta) Only Statements (i) and (ii) are correctb) Only Statements (ii) and (iii) are correctc) Only Statements (i) and (iii) are correctd) None of the above statements are correcte) All the statements are correct. 7. Income elasticity of demand measuresa) Effect on real income of a person due to rising prices.b) How the National Income of a country is dependent on the actual demand of a commodity.c) How increase in money income affects the prices of commodities.d) Change in quantity demanded of a commodity due to change in income of the consumer.e) None of the above 8. Cross elasticity of demand measures.a) The effect of change of price of one commodity on the price of its substitutesb) The effect of a change in demand of one commodity on another.c) The effect of a change of demand of one commodity on price of another commodity.d) The effect of a change of price of one commodity on quantity demanded of another related commodity arising out of change in relative pricese) None of the above 9. Read the following statements carefully and answer the question that follow (i) Effect on the quantity demanded of a commodity due to change in price is known as the Price- effect. (ii) Price effect is made up of income effect and and substitution effect (iii) Income effect is that component of the price effect that results in change in demand of a commodity due to change in real income of a consumer (iv) Substitution effect is that component of price effect where quantity demanded changes due to relative changes in prices of substitute commodities. Please indicate which of the following statements are correcta) (a), (b), and (c) are correct.b) Only (b) is correct.c) Only (b) and (d) are correct.d) None of the above is correcte) All the above Statements are correct. 10. By marginal utility of a commodity we mean :a) that the commodity has very little or minimal benefit to the customerb) the utility to the customer is so small that it cannot be measuredc) the addition to the total benefit accruing to the customer due to consumption of an additional unit of a commodityd) the no of units of another commodity that will bring same utility as one unit of a given commoditye) None of the above Time is Up!