CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 1April 8, 2026 Maven Leave a Comment Welcome to the CMA Foundation MCQ Quiz Economics Lesson 1.3 - Part 1 quiz! Name Email 1. In economics, demand means: Just the desire to have a good The total stock of goods available in the market Desire backed by purchasing power and willingness to pay The quantity of goods produced by a firm None 2. The downward slope of the demand curve is primarily explained by: Increasing utility Law of diminishing marginal utility Government control Perfect competition None 3. The substitution effect of a price fall implies: Real income decreases Goods become relatively cheaper Demand decreases Utility increases infinitely None 4. An inferior good is one for which demand: Is perfectly elastic Rises with income Falls with income Remains constant None 5. A Giffen good violates the law of demand because: It is a luxury Price remains constant It has no substitutes Income effect outweighs substitution effect None 6. A Veblen good is characterized by: Higher demand at higher price due to prestige Low price and high demand Perfect elasticity Zero income effect None 7. Market demand is derived by: Multiplying individual demand by population Averaging all demands Horizontally summing individual demand curves Vertically summing individual demand curves None 8. Change in quantity demanded refers to: Shift of demand curve Change in income Change in taste Movement along demand curve None 9. A rightward shift of the demand curve may occur due to: Rise in price of the same good Fall in income (for normal goods) Increase in population Increase in cost of production None 10. Which of the following is the correct demand function? Dn = f [Pn, Ps, Pc, Y, T] Dn = f [Px, PI, T, W, GP] Dn = f [Qx, AP, MP, TP] Dn = f [TFC, TVC, TC, MC] None 11. The law of demand states that when price rises: Demand also rises Demand remains unchanged Demand falls Supply falls None 12. The demand curve slopes downward from left to right because of all of the following EXCEPT: Law of diminishing marginal utility Income effect Substitution effect Law of increasing returns to scale None 13. Tea and coffee are substitute goods. If the price of coffee rises, the demand for tea will: Fall Rise Remain unchanged Will fall initially, then rise None 14. When income of consumers rises and the demand curve shifts to the right with no change in price, this is called: Extension of demand Contraction of demand Increase in demand Movement along the demand curve None 15. Expensive cars and diamond jewellery are bought more at higher prices to show status and prestige. This is an example of: Giffen paradox Speculation Bandwagon effect Conspicuous goods None Time's upRelated Posts:CMA Foundation MCQ Quiz Economics Lesson 1.2CMA Foundation MCQ Quiz Economics Lesson 1.1Chapter 1: Introduction to Micro EconomicsChapter 12: Mathematical Methods for Economics
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