# Supply MCQs

MCQs on Supply with Answers/ Supply MCQs/ MCQs on Demand and Supply with Answers/ Economics MCQs with Answers/ MCQs of Economics with Answers/ Microeconomics MCQs with Answers/ Economics Lecturer MCQs/ Most repeated MCQs of Economics/ Economics Lecturer Solved Past Papers/ Previous Test of Economics Lecturer/ SS Economics Previous Tests/ Lecturer Economics Previous Tests

#### Supply MCQs

Supply is a part of the:
a. Stock
b. Flow
c. Both of them
d. None of them
ANS: A

The standard form of Supply function is:
a. Q = a – bp
b. Q = b + ap
c. X = a – bp
d. Y = b+ ap
ANS: B

The positive relationship between price and quantity demanded is known as:
a. Law of demand
b. Law of supply
c. Law of market
d. Both (a) and (b)
ANS: B

In the case of supply, quantity is the increasing function of:
a. Demand
b. Income
c. Price
d. Both (a) and (c)
ANS: C

The law of diminishing returns is commonly referred to as the reason for the positive slope of the:
a. Demand function
b. Supply function
c. Both of them
d. None of them
ANS: B

A market supply curve is the:
a. Vertical summation of individual supply curves
b. Horizontal summation of individual supply curves
c. Positively summation of individual supply curves
d. Either (b) or (c)
ANS: B

According to Marshall, the long-run supply curve is:
a. Positive slope
b. Negative slope
c. Horizontal-axis
d. Vertical-axis
ANS: C

According to Modern economics, Alan S. Blinder, Paul. A. Samuelson, W. J. Baumol, G. Stigler, etc. very long-run supply curve is:
a. Perfectly elastic
b. Perfectly inelastic
c. Infinitely elastic
d. Both (a) and (c)
ANS: D

The market period supply function curve is
a. Positive slope
b. Negative slope
c. Horizontal-axis
d. Vertical-axis
ANS: D

The elasticity of the market-period supply function is:
a. Positive
b. Negative
c. Zero
d. Infinity
ANS: C

The short-run supply function curve is:
a. Positive slope
b. Negative slope
c. Horizontal-axis
d. Vertical-axis
ANS: A

According to Marshall, the elasticity of the short-run supply curve is:
a. Positive
b. Negative
c. Infinity
d. Zero
ANS: A

According to H. Evan Drummond and John W. Goodwin, the quantity supplied is a:
a. Zero-dimensional concept
b. One-dimensional concept
c. Two-dimensional concept
d. Neither (a) nor (b)
ANS: B

According to modern economists, the supply curve is a:
a. Zero-dimensional concept
b. One-dimensional concept
c. Two-dimensional concept
d. Neither (a) nor (c)
ANS: C

Which of the following shifting factor of the supply curve?
a. Taxes
b. Subsidies
c. Both of them
d. None of them
ANS: C

The supplier will always chase the:
a. Higher price
b. Low price
c. Mediate priced. All of the above
ANS: A

Which of the following shifting factor of the supply curve?
a. Price of substitute products and price of a joint product
b. Technology and capital per worker
c. The number of producers and factors costs
d. All of the above
ANS: D

The supply side of a market can be represented by a market supply curve:
a. Market demand curve
b. Market supply curve
c. Both of them
d. None of them
ANS: B

According to Marshall, the ‘short-run Market supply curve is:
a. Horizontal-axis
b. Vertical-axis
c. Positive
d. Negative
ANS: C

If the supply is more inelastic, you should draw the supply curve
a. Flatter
b. Steeper
c. Perfect inelastic
d. Both (a) and (b)
ANS: B

Over a longer period, the supply of the product becomes:
a. More elastic
b. More inelastic
c. Perfectly inelastic
d. Perfectly elastic
ANS: A

Supply is a Concept.
a. Stock
b. Flow and stock
c. Flow
d. None of the above
ANS: C

According to Alfred Marshall, ‘Demand curve sloped downward due to law of:
a. Law of equi-marginal utility
b. Law of diminishing marginal utility
c. Both (a) and (b)
d. None of the above
ANS: B

With very elastic supply and very inelastic demand, the burden of the tax on:
b. Sellers
c. Both of both
d. None of them
ANS: A

With very inelastic supply and very elastic demand, the burden of the tax on:
b. Sellers
c. Both of them
d. None of them
ANS: B

The ‘horizontal summation of individual demand is known as:
a. Market demand curve
b. Market supply curve
c. Both of them
d. None of them
ANS: A

If the supply curve is vertical, the deadweight loss of a:
a. Tax is positive
b. Tax is negative
c. Tax is zero
d. Both (a) and (b)
ANS: C

If the demand curve is vertical while the supply curve slopes upward, a tax imposed in this market will end up being paid:
a. Totally by producers
b. Totally by consumers
c. Both of them
d. Neither (a) nor (b)
ANS: A

Fresh vegetable market is market.
a. Very short period
b. Short period
c. Long period
d. Very long period.
ANS: A

According to modern economists, the most basic tools of economics are:
a. Price and quantity
b. Demand and supply
c. Monetary and fiscal policy
d. The elasticity of demand and supply
ANS: B

Price ceiling and price floor are also known as:
a. Equilibrium pricing
b. Disequilibrium pricing
c. Both (a) and (b)
d. None of the above
ANS: B

According to Alfred Marshall, the price of perishable goods is determined in:
a. Short period
b. Very short period
c. Market period
d. Long term period
ANS: B

error: Content is protected !!