| 1 |
If supply rises more proportionately than that of demand, then |
- A. Equilibrium price increases
- B. Equilibrium price decreases
- C. Equilibrium price does not change
- D. Equilibrium quantity decreases
|
| 2 |
If demand decreases by 5% due to 10% increase in Price, then elasticity of demand is |
- A. Equal to unity
- B. More than unity
- C. Less than unity
- D. Zero
|
| 3 |
Cause of movement along the supply curve is |
- A. Change in price
- B. Other factors
- C. Change in tax
- D. Change in income
|
| 4 |
Exceptions, or limitations of law of demand have been stated by |
- A. Professor Marshall
- B. Professor Adam Smith
- C. Professor Benham
- D. Professor Robbins
|
| 5 |
If supply of a commodity changes by more than 10% due to 10% change in its price, then elasticity of supply will be |
- A. Equal to unity
- B. More than unity
- C. Less than unity
- D. Infinite
|
| 6 |
When supply increases due to other factors besides price, it is called |
- A. Extension of supply
- B. Contraction of supply
- C. Rise of supply
- D. Fall of supply
|
| 7 |
Regarding time element, the normal price has types |
- A. One
- B. Two
- C. Three
- D. Four
|
| 8 |
Demand for good like Television and VCR is |
- A. Less elastic
- B. More elastic
- C. Perfectly inelastic
- D. Infinitely elastic
|
| 9 |
A textile mill produces 2000 meters cloth. Entrepreneur offers 1500 meters cloth to sell at price Rs 100 per meter and 500 meters cloth keeps with him. Cloth kept by the entrepreneur is called |
- A. Total production
- B. Supply
- C. Stock
- D. Surplus production
|
| 10 |
Some inferior goods having expensive substitutes are known as: |
- A. Economic goods
- B. Giffen goods
- C. Non-economic goods
- D. Free goods
|
