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- 1. Multiple Choice
The supply of a good refers to:
(a) Actual production of goods
(b) Total stock of goods
(c) Stock available for sale
(d) Amount of goods offered for sale at a particular price per unit of time
- 2. Multiple Choice
Increase or Decrease in Supply means
(a) Shift in supply curve
(b) Movement along same supply curve
(c) Both (a) and (b)
(d) Neither (a) or (b)
- 3. Multiple Choice
If supply curve is Perfectly Inelastic, the supply curve is:
(a) Vertical
(b) Horizontal
(c) Upward sloping
(d) Downward sloping
- 4. Multiple Choice
When supply price increase in the short run, the profit of the producer -----------:
(a) Increases
(b) Decreases
(c) Remains constant
(d) Decreases marginally
- 5. Multiple Choice
A change in the supply of a commodity along with same supply curve may occur due to:
(a) Change in the price of the commodity
(b) Change in the prices of related goods
(c) Change in the future, expectations about the price of the good
(d) Change in the cost of inputs
- 6. Multiple Choice
What is the elasticity of supply, when price changes from 15 to 12 and supply change from 6 units to 5 units?
(a) 0.77
(b) 0.87
(c) 0.833
(d) 0.58
- 7. Multiple Choice
A perfectly inelastic supply curve will be:
(a) Parallel to X axis
(b) Parallel to Y axis
(c) Downward sloping
(d) None of these
- 8. Multiple Choice
If the supply of a commodity is perfectly elastic, an increase in demand will result in:
(a) Decrease in both price and quantity at equilibrium
(b) Increase in both price and quantity at equilibrium
(c) Increase in equilibrium quantity, equilibrium price remaining constant
(d) Increase in equilibrium price, equilibrium quantity remaining constant
- 9. Multiple Choice
When change in the quantity supplied is proportionate to the change in the price, the producer is said to have ----.
(a) Perfectly elastic supply
(b) Relatively elastic supply
(c) Unitary elastic supply
(d) Perfectly inelastic supply
- 10. Multiple Choice
Expansion in supply refers to a situation when the producers are willing to supply a:
(a) Larger quantity of the commodity at an increased price
(b) Larger quantity of the commodity due to increased taxation on the commodity.
(c) Larger quantity of the commodity at the same price.
(d) Larger quantity of the commodity at the decreased price
- 11. Multiple Choice
When supply is perfectly inelastic, elasticity of supply is equal to:
(a) +1
(b) 0
(c) .1
(d) Infinity
- 12. Multiple Choice
If there is an improvement in the technology, .................:
(a) The supply curve shifts to the left
(b) The supply curve shifts to the right
(c) Quantity supplied increase
(d) Both (b) and (c)
- 13. Multiple Choice
If the price of apples rises from 30 per Kg to 40 per Kg and the supply increases from 240 Kg to 300 Kg. Elasticity of supply is:
(a) 0.75
(b) 0.65
(c) 00.67
(d) 00.77
- 14. Multiple Choice
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:
(a) Zero
(b) Infinite
(c) Equal to one
(d) Greater than zero but less than one
- 15. Multiple Choice
Supply refers to quantity supplied at a particular price for a particular period of time:
(a) True
(b) False
(c) Partly true
(d) None
- 16. Multiple Choice
When price remains constant and quantity demanded changes, then the elasticity of demand will be:
(a) Vertical to X axis
(b) Horizontal to X axis
(c) Either (a) or (b)
(d) None
- 17. Multiple Choice
Increase or decrease in supply means:
(a) Change in supply due to change in its own price
(b) Change in supply due to change in factors other than its own price
(c) Both of above
(d) None of above
- 18. Multiple Choice
When Supply Curve shifts to the right there is ---------------- in Supply.
(a) An increase
(b) Expansion
(c) Contraction (d) Decrease.
(d) Decrease.
- 19. Multiple Choice
Elasticity of supply is defined as responsiveness of quantity supplied of a good to change in -------------.
(a) price of concerned good
(b) price of substitute good
(c) Demand
(d) None.
- 20. Multiple Choice
The supply of the commodity implies?
(a) Total Output during a specified period
(b) Its total stock
(c) Its stock available for sale
(d) Its Quantity Offered for sale at a particular price per unit of time
- 21. Multiple Choice
Supply of a commodity is a -----------------.
(a) Stock concept
(b) Flow Concept
(c) Both stock and flow concept
(d) Whole sale concept
- 22. Multiple Choice
The price of mangoes increases from 30 per kilogram to 40 per kilogram and the supply increases from 240 kilograms the 300 kilograms. What will be the elasticity of supply for mangoes?
(a) – 0.67
(b) + 0.67
(c) – 0.77
(d) +0.77
- 23. Multiple Choice
If a 20% fall in rice brings about a 10% fall in quantity supplied, in such a case elasticity of supply will be equal to:
(a) 2.0
(b) 0.5
(c) 1.0
(d) 1.5
- 24. Multiple Choice
At a price of 25 per kg, the supply of a commodity is 10,000 kg per week. An increase in its price to 30 per kg, increases the supply of the commodity to 12,000 kg per week. The elasticity of supply will be: -
(a) 0.75
(b) 1.00
(c) 1.50
(d) 1.75
- 25. Multiple Choice
Short run price is also called by the name of --------------.
(a) Market price
(b) Showroom price
(c) Maximum retail price
(d) None of these.
- 26. Multiple Choice
If a 20% fall in the price brings about a 10% fall in the quantity supplied, then the elasticity of supply will be equal to:
(a) 2.0
(b) 0.5
(c) 1.0
(d) 1.5
- 27. Multiple Choice
Elasticity of supply is greater than one when:
(a) Proportionate change in price is more than the proportionate change in quantity supplied
(b) Proportionate change in quantity supplied is more than the proportionate change in price
(c) Change in price and quantity supplied are equal
(d) All of the above.
- 28. Multiple Choice
Supply refers to which of the following?
(a) Total stock of the goods
(b) Stock of the goods available for sale
(c) Quantity of a good offered for sale at a particular price
(d) Quantity of a good actually sold.
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