25-03-2021 CAPF Exam Quiz: General Knowledge Questions

1) Question

The law of demand states that:

as the demand rises, the price rises

as the price rises, the demand rises

as the price rises, the demand falls

as supply rises, the demand rises

2) Question

According to the law of supply:

There is positive relation between supply and price

There is negative relation between supply and price

There is constant relation between supply and price

There is no relation relation between supply and price

3) Question

A Market Economy is driven by

1) Law of Supply

2) Law of Demand

3) Trade agreements

4) Government planning

Choose the correct code from given option

1,2 and 3 only

1, 2 and 4 only

1 and 2 only

3 and 4 only

4) Question

Law of demand implies that when there is excess demand for a commodity, then

Price of the commodity falls

Price of the commodity remains same

Price of the commodity rises

Quantity demanded of the commodity falls

5) Question

Which one of the following is not an assumption in the law of demand?

There are no changes in the taste and preferences of consumers

Income of consumers remains constant

Consumers are affected by demonstration effect

There are no changes in the price of substitute goods