Economics General knowledge Questions

DIRECTIONS : Objective Question on Science.
1. _____ is foundation for law of demand.
  A.  Gossen’s law
  B.  Law of supply
  C.  Law of diminishing marginal utility
  D.  Law of equi-marginal utility
2. Law of demand establishes _____
  A. Positive relationship between price and quantity
  B. Inverse relationship between price and quantity
  C. Both
  D. None
3. _____ introduced the concept of elasticity of demand.
  A.  Ferguson
  B.  Alfred Marshall
  C.  Adam Smith
  D.  Keynes
4. _____ arise due to too much concentration and localization of industries.
  A.  Internal diseconomies
  B.  External diseconomies
  C.  External economies
  D.  Internal economies
5. _____ is the main factor affecting demand and supply.
  A.  Consumption
  B.  Investment
  C.  Equilibrium
  D.  Price

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