Demand and Supply Mcqs Test 08 Preparation Online

1. A vertical supply curve parallel to the price axis implies that the elasticity of supply is?

A. Indinity

B. Greater than zero but less than infinity

C. Zero

D. Equal to one

2. Which of the following cost curves is never Un-shaped?

A. Average variable cost curve

B. Average cost curve

C. Average fixed cost curve

D. Marginal cost curve

3. Production is a function of?

A. Profits

B. Inputs

C. Costs

D. Price

4. Which cost increases continuously with the increase in production?

A. Fixed cost

B. Marginal cost

C. Variable cost

D. Average cost

5. In the short term, when the output of a firm increases, its average fixed cost?

A. Remains constant

B. Increase

C. Decrease

D. First declines and then rises

6. A significant property of the Cobb - Douglas production function is that the elasticity of substitution between inputs is?

A. Equal to unity

B. Zero

C. Less than unity

D. More than unity

7. An ISO-product curve slopes?

A. Upward to the left

B. Downward to the left

C. Downward to the right

D. Upward to the right

8. Total costs in the short-term are classified into fixed costs and varibale costs. Which one of the following is a variable cost?

A. Payment of rent on buildings

B. Interest payment on past borrowing

C. Cost of raw materials

D. Cost of equipment

9. The supply of a commodity refers to?

A. Stock available for sale

B. Actual production of the commodity

C. Amount of the commodity offered for sale at a particular price per unit of time

D. Total existing stock of the commodity

10. The production techniques are technically efficient?

A. Between the two ridge lines

B. On the upper ridge line

C. Below the lower ridge line

D. Above the upper ridge line

Demand and Supply Mcqs Test 08 Preparation Online

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