WorksheetsFoundation Economics Chap 2 - Part 1
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
The supply curve shifts to the right because of :
a)
Improved technology
b)
Increased price of factors of production
c)
Increased excise duty
d)
All of these
2.
The supply of a good refers to:
a)
stock available for sale
b)
total stock in the warehouse
c)
actual production of the goods
d)
Quantity of the good offered for sale at a particular price per unit of Time
3.
Supply is a _______ chain
a)
Flow
b)
Stock
c)
Both 'A' and 'B'
d)
None
4.
Total utility is also known as:
a)
Total satiety
b)
Aggregate satiety
c)
Full satiety
d)
Half satiety
5.
A vertical supply curve parallel to y axis implies the elasticity of supply is:
a)
Zero
b)
Infinity
c)
Equal to one
d)
Greater than one
6.
Budget line is also called ______
a)
Price line
b)
Iso cost line
c)
Iso quant
d)
None
7.
Forecasting of demand is the art and science of predicting?
a)
actual demand for a product at the same future date
b)
Probable demand in future
c)
Total demand in future
d)
None
8.
Addition made to tiral utility refers to?
a)
Total utility
b)
Average utility
c)
Marginal utility
d)
All of these
9.
The elasticity of supply is zero means?
a)
Perfectly inelastic
b)
perfectly elastic
c)
Imperfectly elastic
d)
all of these
10.
Which of the following Statement is correct?
a)
Supply is inversely related to its cost of production
b)
price and quantity demanded of a good have a direct relationship
c)
taxes and subsidy have no impact on the supply of the product
d)
seasonal changes have no impact on the supply of the commodity
11.
When the supply of a product is perfectly inelastic then the curve will be?
a)
parallel to y axis
b)
parallel to x axis
c)
at the angle of 45 degree
d)
sloping upwords
12.
The quantity supplied of a goods or services is the amount that_______
a)
as actually bought during a given period at given price
b)
producers wish they could sell at higher price
c)
produces plan to sell during a given time period at given price
d)
people are willing to buy during a green their period at a given price
13.
luxury goods have income elasticity
a)
negative and less than 1
b)
positive and greater than 1
c)
zero
d)
None
14.
percentage change quantity supplied is divided by_________to obtained elasticity of supply
a)
percentage decrease in price
b)
percentage change in price
c)
both a and b
d)
none
15.
if the price of the product is rupees 20 e per unit and if the prices decreases by 5% as a result of which quantity demanded increases by 10% find MR
a)
9
b)
19
c)
10
d)
12
16.
In the case of a straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets y axis would be
a)
zero
b)
greater than one
c)
less than one
d)
infinite
17.
Calculate income elasticity for the household when the income of the household increases by 10% and the demand for cars rises by 20%
a)
2
b)
-2
c)
5
d)
-5
18.
The commodity whose demand is associated with the name of Sir. Robert Giffen
a)
necessary goods
b)
luxury goods
c)
inferior goods
d)
ordinary goods
19.
In expansion and contraction of demand
a)
demand curve remains unchanged
b)
demand curve changes
c)
slope demand curve changes
d)
both a and c
20.
Certain goods for which quantity demanded decreases when income increases are called
a)
superior goods
b)
inferior goods
c)
prestige goods
d)
conspicuous goods
21.
When the price falls by 5% and the demand in rises by 6% then, elasticity of demand is
a)
elastic
b)
inelastic
c)
unitary elastic
d)
zero
22.
Cross elasticity of complementary goods is
a)
positive
b)
negative
c)
infinity
d)
none of these
23.
Demand of ipod increases from 950 to 980 and income increases from 9000 to 9800,whatis income elasticity
a)
0.53
b)
0.35
c)
0.43
d)
none
24.
Contraction of demand results due to
a)
increase in the price of the goods
b)
decrease in the number of producers
c)
decrease in the output of the sellers
d)
decrease in the price of the goods
25.
Bricks for houses is an example of which kind of demand
a)
composite
b)
competitive
c)
joint
d)
derived
26.
Normal goods have
a)
zero income elasticity
b)
negative income elasticity
c)
positive income elasticity
d)
infinite income elasticity
27.
In which of the following cases, the demand for goods tends to be less elastic
a)
good is necessary
b)
the time period is shorter
c)
number of close substitutes is less
d)
all of the above
28.
Which of the following elasticity of demand measures a movement along the deamand curve than a shift in the curve
a)
income Elasticity of demand
b)
price elasticity of demand
c)
substitution elasticity of demand
d)
none of these
29.
If the price elasticity of demand is zero, the shape of the curve will be
a)
horizontal
b)
vertical
c)
sloping downwards
d)
none of these
30.
If a 20% fall in the price of a commodity brings about a 40% increase in its demand, then the demand for the commodity will be termed as
a)
inelastic
b)
elastic
c)
highly elastic
d)
perfectly elastic
100 %
