Question : What kind of relationship exists between income and demand in the case of normal goods?

Option 1: There is no impact of income on demand.

Option 2: There is a direct relationship.

Option 3: There is an inverse relationship.

Option 4: Sometimes, there is a direct and sometimes an inverse relationship.

Question : The demand curve will shift forward when ______.

Option 1: price of complementary goods fall

Option 2: price of substitute goods decreases

Option 3: income of consumer fall

Option 4: price of complement goods increases

Question : The total value of goods and services produced in a country during a given period is

Option 1: disposable income

Option 2: national income

Option 3: per capita income

Option 4: net national income

Question : The equilibrium price of a commodity will rise if there is a/an:

Option 1: increase in supply combined with a decrease in demand.

Option 2: increases in both demand and supply.

Option 3: decrease in both demand and supply.

Option 4: increase in demand accompanied by a decrease in supply.

Question : Direction: In the following question, some parts of the sentences have errors and some are correct. Find out which part of a sentence has an error. The number of that part is the answer. If a sentence is free from error, your answer is No error.

Sometimes (1) /  I get angry (2) /  on her. (3) / No error. (4)

Option 1: 1

Option 2: 2

Option 3: 3

Option 4: 4

Question : What happens when there is a demand deficiency in an economy?

Option 1: Poverty

Option 2: Stagnation

Option 3: Recession

Option 4: Inflation