Which is not a central problem of an economy?
Q. Which is not a central problem of an economy? A. What to produce B. How to produce C. How to maximize private profit D. For whom to produce Answer: How to maximize private profit
Economic problems arise because
Q. Economic problems arise because: A. Wants are unlimited B. Resources are scarce C. Scarce resources have alternative uses D. All of the above Answer: All of the above
What best explains a shift in market supply curve to the right?
Q. What best explains a shift in market supply curve to the right? A. An advertising campaign is successful in promoting the good B. A new technique makes it cheaper to produce the good C. The government introduces a tax on the good D. The price of raw materials increases Answer: A new technique
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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:
Q. 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. Perfectly elastic B. Perfectly inelastic C. Less elastic D. More elastic
When supply of a commodity increases without change in price it is called
Q. When supply of a commodity increases without change in price it is called: A. Fall in supply B. Expansion in supply C. Contraction in supply D. Rise in supply Answer: Rise in supply
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If elasticity of supply is greater than one. Supply curve will be
Q. If elasticity of supply is greater than one. Supply curve will be: A. Horizontal B. Vertical C. Passing through origin D. Touching y-axis Answer: Touching y-axis
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During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to
Q. During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to: A. Rightward B. Leftward C. Downward D. Rise in supply Answer: Leftward
An increase in demand would cause supply curve to
Q. An increase in demand would cause supply curve to: A. Shift to the left B. Shift to the right C. Change in slope of supply curve D. No effect on supply Answer: No effect on supply
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Supply curve will shift when
Q. Supply curve will shift when: A. Price falls B. Price rises C. Demand shifts D. Technology change Answer: Technology change
What does price elasticity of demand measure?
Q. What does price elasticity of demand measure? A. Change in price caused by changes in demand B. The rate of change of sales C. The responsiveness of demand to price changes D. The value of sales of a given price Answer: The responsiveness of demand to price changes