11th Principles of Economics MCQS
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
Supply
Surplus production
Total production
Stock
The cause of rise and fall of demand is
price
population
Both 1st and 3rd
income
Supply of perishable goods e.g. groceries, fruit, meat etc is
Perfectly elastic
More elastic
Perfectly inelastic
Less elastic
Supply means
quantity of goods offered for sale at different prices
purchasing power of quantity supplied
total money of a specific producer
Number of buyers
Market price will be determined where
Demand is less elastic and supply is more elastic
Demand and supply are equal
Supply is more than demand
Demand is more than supply
In case of perfectly elastic supply or infinite elasticity of supply, supply curve is
Negative sloped
Vertical (parallel to y-axis)
Horizontal (parallel to x-axis)
Positive sloped
If the total expenditure of the consumer decreases due to decrease in price, then nature of elasticity of demand will be
Less than unity
Equal to unity
Elasticity of demand = zero
More than unity
Supply of goods depends on
utility
price
income and price
income
Elasticity of demand for durable goods is
Less elastic
Infinte
Zero
More elastic
If total expenditure of the consumer decreases due to increase in price, then nature of elasticity of demand will be
Equal to unity
More than unity
Less than unity
Elasticity of demand = zero
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