| 1 |
Extension of supply will take place as a consequence of: |
- A. Change in price
- B. Change in population
- C. Change in technology
- D. Change in money supply
|
| 2 |
Perfectly inelastic supply curve is: |
- A. Parallel to vertical axis
- B. Parallel to horizontal axis
- C. Rises upward to the right
- D. Falls downward to the right
|
| 3 |
If we know that quantities bought and sold are equal, we can conclude that |
- A. quantities demanded and supplied are also equal
- B. the market is in equilibrium
- C. there will be no tendency for a price change
- D. all of the above
|
| 4 |
An increases in the price of mutton provides information which |
- A. tells consumers to buy more mutton
- B. tells consumers to buy more chicken
- C. tells producers to produce more mutton
- D. b and c of above
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| 5 |
Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is |
- A. a shortage
- B. a surplus
- C. excess supply
- D. loss
|
| 6 |
Demands and supply curves cross at |
- A. always at 60 degree
- B. at 90 degree
- C. at equal angle
- D. at any angle
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| 7 |
Market equilibrium means |
- A. number of buyers and sellers are equal
- B. demand and supply of commodity are equal
- C. no price is changing
- D. prices rise very slowly
|
| 8 |
In case of a fall in supply. |
- A. Quantity supplied falls at the same price.
- B. Quantity supplied rises at the same price.
- C. Quantity supplied remain at the lower price.
- D. None of the three
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| 9 |
When there is big change in quantity supplied resulting from a minor change inits price,its elasticity of supply will be. |
- A. Equal to unity
- B. Less than unity
- C. Equal to zero
- D. Greater than unity
|
| 10 |
If price is set above equilibrium level, there will be |
- A. surplus commodity in the market
- B. shortage of commodity in the market
- C. supply curve will shift
- D. demand curve will shift
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