WorksheetsFoundation Economics Chap 2 - Part 6
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
If demand is parallel to the x-axis, what will be the nature of elasticity?
a)
Perfectly elastic
b)
Inelastic
c)
Elastic
d)
Highly elastic
2.
Giffen paradox is an exception of
a)
Demand.
b)
Supply.
c)
Production.
d)
Utility.
3.
Law of demand is a ______
a)
Quantitative statement.
b)
Qualitative statement.
c)
Both (a) and (b).
d)
Hypothetical.
4.
The maximum quantity that a supplier is prepared to supply in the market at a given price is called
a)
economic order quantity
b)
optimum quantity
c)
supply quantity
d)
both
5.
Which of the following is not a factor in market supply of a product
a)
cost of production
b)
number of buyers
c)
market price of the product
d)
price of related product
6.
If the supply of a product remain same with the increase in price the possible reason can be
a)
apprehension of future price hike
b)
limited production facility
c)
commodity being a rare commodity
d)
all the above
7.
Quantity supplied is a function
a)
demand of the product
b)
elasticity of demand
c)
cost of product
d)
income elasticity of the product
8.
.....is not a determinant of aggregate supply...
a)
quantity demanded
b)
price of the product under consideration
c)
relative price of other goods
d)
future expectation about prices
9.
.....is not a factor of quantity supplied....
a)
price of the goods
b)
price of the related other goods
c)
cost of production
d)
consumer disposal income
10.
....is not a factor in market supply of product
a)
cost of production
b)
consumer tastes
c)
market price of the product
d)
price of related product
11.
Shift in supply curve is caused by...
a)
change in ceteris paribus condition
b)
change in price
c)
change in fashion
d)
change in consumer income
12.
Change in cost of production of the concerned goods causes...
a)
the demand curve to shift
b)
the supply curve to shift
c)
increased in quantity demanded
d)
decreased in quantity supplied
13.
Non-price factor causes...
a)
shift in supply curve
b)
movement in supply
c)
both
d)
none
14.
At a given price increase in quantity supplied can be possible if...
a)
there is apprehension of sharp fall in prices in future
b)
refund or subsidy of statutory levey in cash is given by the govt.
c)
improvement in technology led to cost saving
d)
all the above
15.
A positive sloped supply curve for a product represent....
a)
supply will move with movement in the price in the opposite direction
b)
supply will move with movement in the price in the same direction
c)
both
d)
none
16.
Movement in supply curve is caused by...
a)
non price factors
b)
price factors
c)
both
d)
none
17.
Which of the following will have a relatively flat supply curve....
a)
land
b)
labour
c)
capital
d)
raw material
18.
Extension in supply depicted by...
a)
downward movement in supply curve
b)
upward movement in supply curve
c)
both
d)
none
19.
contraction in supply is depicted by....
a)
downward movement in supply curve
b)
upward movement in supply curve
c)
both
d)
none
20.
A supply curve parallel to x axis mean the product supply is...
a)
limited
b)
unlimited
c)
not available
d)
none
21.
Which of these would lead to increase in quantity supplied at a given price?
a)
increase in VAT
b)
increase in excise duty
c)
increase in import duty
d)
reduction in taxes
22.
Which of these would lead to decrease in quantity supplied at a given price?
a)
decrease in VAT
b)
decrease in excise duty
c)
decrease in import duty
d)
imposition of higher taxes
23.
Market supply curve for a commodity is....
a)
horizontal summation of the individual supply curve for the commodity
b)
summation of individual supply curve for 3 years
c)
supply curve of complementary goods
d)
supply curve of supplementary goods
24.
Elasticity of supply depends upon ....
a)
nature of commodity
b)
production technology
c)
future outlook of prices
d)
all the above
25.
Which of these does not affect elasticity of supply
a)
size of population
b)
disposal income of consumer
c)
consumers taste & preference
d)
all the above
26.
In the short run the supply is
a)
relatively less elastic
b)
more elastic
c)
perfectly in elastic
d)
perfectly elastic
27.
in the long run the supply curve is....
a)
inelastic
b)
unity
c)
more elastic
d)
perfectly elastic
28.
If the time horizon is longer , the elasticity of supply will be...
a)
unit
b)
less than 1
c)
more elastic
d)
less than 0
29.
A perfectly inelastic supply curve will be ...
a)
parallel to y axis or a vertical line
b)
parallel to x axis
c)
U shaped
d)
downward sloping
30.
A perfectly elastic supply curve will be ...
a)
parallel to y axis or a vertical line
b)
parallel to x axis
c)
U shaped
d)
downward sloping
100 %
