Demand and Supply Mcqs Test 04 Preparation Online

1. Which is not an essential condition for an economic problem to arise?

A. Unlimited wants

B. Scarcity of resources

C. Alternative uses of scarce resources

D. Use of money

2. In May 2013, firm was supplying 500kg of sugar of market price of Rs. 30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price Rs. 20/- per kg. These changes show that supply of sugar is?

A. More elastic

B. Less elastic

C. Perfectly inelastic

D. Perfectly elastic

3. Which is not a central problem of an economy?

A. How to maximize private profit

B. For whom to produce

C. How to produce

D. What to produce

4. If price changes by 1% and supply changes by 2% then supply is?

A. Static

B. Elastic

C. Indeterminate

D. Inelastic

5. What best explains a shift in market supply curve to the right?

A. A new technique makes it cheaper to produce the good

B. An advertising campaign is successful in promoting the good

C. The government introduces a tax on the good

D. The price of raw materials increases

6. Economic problems arise because?

A. Wants are unlimited

B. Scarce resources have alternative uses

C. Resources are scarce

D. All of the above

7. During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to?

A. Leftward

B. Rightward

C. Downward

D. Rise in supply

8. When supply of a commodity increases without change in price it is called?

A. Expansion in supply

B. Rise in supply

C. Contraction in supply

D. Fall in supply

9. If elasticity of supply is greater than one. Supply curve will be?

A. Passing through origin

B. Vertical

C. Touching y-axis

D. Horizontal

10. Supply surve?

A. Is vertical in long run

B. Is same in long and short run

C. Is flatter in long run

D. Is horizontal in both short and long run

Demand and Supply Mcqs Test 04 Preparation Online

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