| 1 |
One of the following is not an assumption of law of supply. |
- A. Political system should not changed
- B. Cost of production should not changed
- C. Production technique should not changed
- D. Cost of raw material should not changed
|
| 2 |
Price of a product is determined in a free market |
- A. by demand for the product
- B. by supply of the product
- C. by both demand and supply
- D. by the government
|
| 3 |
If equilibrium price rises but equilibrium quantity remains unchanged, the cause is |
- A. supply and demand both increase equally
- B. supply and demand both decrease equally
- C. supply decreases and demand increases
- D. supply increases and demand decreases
|
| 4 |
When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be. |
- A. Less than unity
- B. Greater than unity
- C. Equal to unity
- D. Equal to zero
|
| 5 |
A fall fall in supply will take place due to a: |
- A. Business collusion
- B. Bumper crop
- C. Fall in custom duty
- D. Fall in income
|
| 6 |
In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then |
- A. price will fall
- B. price remains same
- C. price will rise
- D. quantity rises
|
| 7 |
With an increase in cost of production, price of the product rises while supply of the product will. |
- A. Fall
- B. Rise
- C. Remain unchanged
- D. Non of the three
|
| 8 |
Market Price of Perishable |
- A. Commodities
- B. Utility
- C. Consumer
- D. None of these
|
| 9 |
Which one will be termed as supply of a product. |
- A. One tone potato in cold storage
- B. One ton rice offered for sale in market
- C. One ton rice brought for sale in market at a certain price.
- D. None of the three
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| 10 |
Markets where firms supply goods and services demanded by households are |
- A. factor market
- B. product market
- C. open markets
- D. resource markets
|
