Question

Supply is a ___ concept
a) Flow b) Stock
c) Both d) Qualitative
2. Elasticity of supply refers to the percentage
change in supply divided by
a) percentage change in income
b) percentage change in price
c) percentage change in demand
d) percentage change in cost
3. Which of the following is not a determinant of
supply
a) price of good concerned
b) price of related goods
c) technology improvements
d) customs and traditions
4. when the price of a commodity increases
from Rs. 200 to Rs. 250 and consequently
the quantity supplied increases from 1000
units to 1100 units. What is the coefficient of
elasticity of supply
a) 4.0 b) 0.4 c) 5.0 d) 0.5
5. The percentage change in quantity supplied
is due to percentage change in price is called
a) elastic supply
b) inelastic supply
c) unitary elastic supply
d) elasticity of supply
6. Elasticity of supply for a positively sloping
supply curve that start from price axis is
a) zero b) greater than 1
c) less than 1 d) equals to 1
7. When price of a good changes it brings
about what kind of change in supply
a) shift in supply curve
b) change in quantity supplied
c) expansion of quantity supplied
d) contraction of quantity supplied
8. When the government grant subsidies then
the supply will
a) expands b) not change
c) fall d) increase
9. Which law States direct relationship between
price and quantity supplied for a commodity
a) law of demand
b) law of supply
c) law of income demand
d) law of cross demand
10. In Economics supply means
a) quantity of a commodity which is actually
offered for sale at a given price for a
particular period of time
b) quantiy of a commodity which is
demanded at a given prices
c) stock of commodity which is sold at a
given price
d) quantity of a commodity which is sold at a
particular price
11. Which of these would lead to increase in
quantity supply at a given price
a) increase in tax levied on good
b) decrease in government subsidies
c) advanced technology
d) increase in cost of production
12. The supply function of a product X is as
Sx=5P-3 where p stands for price. The
quantity supplied corresponding to price of
rupees 3 will be
a) 15 b) 11 c) 12 d) 18
13. The law of supply shows a positive
relationship between Price and Demand for
the commodity
a) true b) false
14. When supply curve is slopes upwards to right
it means that
a) there is a negative relationship
b) the slope is positive
c) there is a positive relationship
d) both b and c
15. As the price of a commodity rises from Rs.
200 to Rs. 280 its supply rises from 1700
units to 2600 units measure elasticity of
supply
a) 1.09 b) 1.32 c) 2.25 d) 1.25
16. When the

Answer 1

Answer:

1.a)

2.d)

3.d)

4.d)

5.c)

6.b)

7.a)

8.b)

9.c)

10.c)

11.b)

12.a)

13.d)

14.b)

15.a)