Practice Test

Q1) ________determines the potential supply. Show Answer

Q2) Slope of the normal supply curve is always _______. Show Answer

Q3) In the long-run period, supply is _____. Show Answer

Q4) In a very short period, supply is ______. Show Answer

Q5) Supply varies ________ with the price of a commodity. Show Answer

Q6) Supply is _________ related to price. Show Answer

Q7) Other things remaining the same, as price falls, supply_________. Show Answer

Q8) An expansion and contraction in supply are shown on the ________ supply curve. Show Answer

Q9) An increase in supply is shown by the shifting curve to the ________. Show Answer

Q10) A decrease in supply is shown by the shifting supply curve to the ________. Show Answer

Q11) When price rises, the supply curve moves _______. Show Answer

Q12) When price falls, the supply curve moves Show Answer

Q13) _______ is the graphical presentation of the supply schedule. Show Answer

Q14) When two or more than two goods are supplied together, it is known as_______ supply. Show Answer

Q15) When the same commodity is supplied from various sources, it is known as _______. Show Answer

Q16) When the price rises then there is a________ of supply. Show Answer

Q17) In case of perishable goods, stock and supply are _________. Show Answer

Q18) Generally, stock is ___________ than supply. Show Answer

Q19) Supply is a _______ term. Show Answer

Q20) Supply can exceed ________. Show Answer

Q21) If monsoon fails, the supply of food grains would _________. Show Answer

Q22) There is _________ relationship between supply and price. Show Answer

Q23) Supply curve has _________ slope. Show Answer

Q24) _________creates potential supply. Show Answer

Q25) _______ curve is graphical representation of supply schedule. Show Answer

Q26) A rise in supply due to rise in price alone iscalled _________ of supply. Show Answer

Q27) If price falls, supply curve moves _________. Show Answer

Q28) If price rises, the supply curve moves ______. Show Answer

Q29) Stock can exceed __________. Show Answer

Q30) A normal supply curve slopes ________. Show Answer

Q31) The supply curve of labour slopes _________. Show Answer

Q32) Supply cannot be __________ than stock. Show Answer

Q33) Increase in supply means selling _________ quantityat the same price. Show Answer

Q34) When supply decreases, supply curve shiftsto the _________. Show Answer

Q35) The supply of old coins and antiques is __________. Show Answer

Q36) Slope of the supply curve is ________. Show Answer

Q37) The relationship between price of a commodity andits supply is ___________. Show Answer

Q38) The supply curve is __________ sloping. Show Answer

Q39) In long run, supply becomes __________. Show Answer

Q40) The minimum price kept by a seller for a commoditybelow which he doesn't want to sell even single unit of the commodity is ______ price Show Answer

Q41) A decrease in supply is shown by the shifting supply curve to the _______. Show Answer

Q42) Stock referes to the _______ concept. Show Answer

Q43) Like a reservoir, stock refers to the total quantity of a commodity ____________. Show Answer

Q44) Supply is the part of stock and _______ the stock. Show Answer

Q45) Supply curve normally slopes _________. Show Answer

Q46) Extension is supply refers to ________. Show Answer

Q47) There is contraction in supply because of the _________. Show Answer

Q48) The law of Supply represents the general tendency of the _______. Show Answer

Q49) Supply refers to the stock of goods. Show Answer

Q50) Demand and supply are market forces. Show Answer

Q51) Supply is a relative term. Show Answer

Q52) Supply varies directly with price. Show Answer

Q53) Stock can not exceed supply. Show Answer

Q54) Supply can not be more than stock. Show Answer

Q55) Due to increase in the supply, supply curve shifts to the right. Show Answer

Q56) Contraction in supply is shown by upward movement on same supply curve. Show Answer

Q57) There is no difference between stock of and supply of perishable goods. Show Answer

Q58) Supply curve is normally upward sloping from the left to the right. Show Answer

Q59) Supply determines the potential stock. Show Answer

Q60) Supply refers to the amount of stock offered for sale at a price. Show Answer

Q61) The supply curve of labour slopes backwards. Show Answer

Q62) Law of supply assumes that the motive of the seller is profit maximization. Show Answer

Q63) A supply scheduled is a graphical representation of supply pattern. Show Answer

Q64) A supply curve is a graphical representation of supply schedule. Show Answer

Q65) Market supply depends upon many factors. Show Answer

Q66) Supply expands with a fall in price. Show Answer

Q67) Stock is a function of production. Show Answer

Q68) Supply is a flow concept. Show Answer

Q69) When supply curve is upward sloping, its slope is ______. Show Answer

Q70) An upward sloping supply curve shows ______. Show Answer

Q71) A right shift in supply curve shows ______. Show Answer

Q72) Other factors remaining constant, when less is supplied, only due to a fall in price, it shows ______. Show Answer

Q73) Net addition made to the total revenue by selling an extra unit of a commodity is ______. Show Answer

Q74) Determinants of supply are _______. Show Answer

Q75) Statement related to reservation price are ______. Show Answer

Q76) Exceptions to the law of supply are ______. Show Answer

Q77) Average Revenue is obtained when _______. Show Answer

Q78) Increase in supply is shown by ______. Show Answer

Q79) The following statement is true with respect to stock.
i. Stock can be increased by increasing production.
ii. Stock is potential supply.
iii. Stock is expressed in relation to price, time and quantity.
iv. Without stock, supply is not possible. Show Answer

Q80) These statements are not true with respect to supply.
i. Supply is a relative concept.
ii. Supply is created in consumption process.
iii. Supply is a flow concept.
iv. Normally, supply exceeds stock. Show Answer

Q81) Which of these factors affect supply?
i. State of technology
ii. Government policy
iii. Size of population
iv. Export and Imports Show Answer

Q82) This is not an assumption to the law of supply.
i. No change in price of the commodity
ii. No change in transport cost
iii. Constant cost of production
iv. No change in weather conditions Show Answer

Q83) This statement pertaining to the law of supply is incorrect.
i. The law of supply is based on certain assumptions.
ii. It was introduced by Paul Samuelson.
iii. It explains the functional relationship between price and quantity supplied.
iv. The law of supply has certain exceptions. Show Answer

Q84) These are exceptions to the law of supply.
i. Agricultural goods
ii. Supply of labour
iii. Rare goods
iv. Perishable goods Show Answer

Q85) The following are components of total cost.
i. Total fixed cost
ii. Marginal cost
iii. Total variable cost
iv. Average cost Show Answer

Q86) Assertion (A): By increasing production, stock can be increased.
Reasoning (R): Without stock, supply is not possible. Show Answer

Q87) Assertion (A): Supply is a relative term.
Reasoning (R): Supply is always expressed in relation to price, time and quantity. Show Answer

Q88) Assertion (A): The law of supply was introduced by Prof. Marshall in his book.
Reasoning (R): The law explains relationship between quantity supplied and quantity demanded. Show Answer

Q89) Assertion (A): The law of supply assumes that cost of production is constant.
Reasoning (R): A change in cost of production will affect supply even at the same price. Show Answer

Q90) Assertion (A): Supply of labour falls with rise in wage rate beyond a certain point.
Reasoning (R): The worker prefers leisure over work after receiving higher amount of wages. Show Answer

Q91) Assertion (A): A painting of M F Hussain is an exception to the law of supply.
Reasoning (R): The supply of painting cannot be increased or decreased according to demand. Show Answer

Q92) Assertion (A): Expansion of supply takes places only due a fall in price.
Reasoning (R): Expansion of supply leads to an upward movement on the same supply curve. Show Answer

Q93) Assertion (A): Increase in supply means rise in supply due to favourable change in commodity price.
Reasoning (R): An increase in supply is represented by a shift in the supply curve from left to right. Show Answer

Q94)
Assertion (A): Total cost = Total fixed cost + Total variable cost.
Reasoning (R): Total cost of production refers to cost of production per unit. Show Answer

Q95) Assertion (A): Average revenue is the revenue per unit of output sold.
Reasoning (R): Average revenue is obtained by dividing total revenue by no. of units sold. Show Answer

Q96) ___________ can be defined as the sum total of quantity of the commodity produced at a given period of time in the economy. Show Answer

Q97) _______________ is the total quantity of commodity available for sale with a seller at a particular point of time. Show Answer

Q98) __________ is always expressed in relation to price, time and quantity. Show Answer

Q99) The supply curve ___________ of has a backward bending slope. Show Answer

Q100) A ___________ movement along the same supply curve shows contraction of supply. Show Answer

Q101) A __________ shift in supply curve shows decrease in supply. Show Answer

Q102) Net addition made to _________ by producing an extra unit of a commodity is marginal cost. Show Answer

Q103) __________ is calculated by dividing total cost by total quantity of production. Show Answer