Max. Time: 35 minutes Total Marks : 30

Answer all the question

  1. The supply function is given as Q = -100 + 10 P. Find the elasticity using point method, when price is Rs. 15.

(a) 4 (b) -3 (c) -5 (d) 3

  1. Elasticity of supply is greater than one when .

(a) Proportionate change in quantity supplied is more than the proportionate change in price.

(b) Proportionate change in price is greater than the proportionate change in quantity supplied.

(c) Change in price and quantity supplied are equal.

(d) None of the above.

  1. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:                                         (a)   Zero              (b)   Infinite      (c)   Equal to one      (d) Greater than zero but less than one.
  2. Perishable commodities will have (a) Perfectly elastic curve                                     (b) Perfectly inelastic curve                                                                    (c) Elastic                                                                 (d) Inelastic
  3. The price of Commodity X in- creased from Rs. 2,000 per unit to Rs. 2,100 per unit and consequenty the quantity supplied rises from 2,500 units to 3,000 units.. The Elasticity of supply will be                                                                                        (a)  2                        (b) 4                       (c) .25                   (d) 0
  4. Which of the following statements is correct?                                                                                                                       (a)  2                   (b) 4              (c) .25                    (d) 0
  5. The elasticity of supply is defined as the (a) Responsiveness of the quantity supplied of a good to a change in its price.
  6. (b) Responsiveness of the quantity supplied of a good without change in its price                                               (c) Responsiveness of the quantity demanded of a good to a change in its price.                                                    (d) Responsiveness of the quantity demanded of a good without change in its price
  7. When the supply curve shifts to the left or right, it is called as or in supply, respectively.                                    (a) Decrease, Decrease             (b) Decreases, Increase       (c) Increase, Increase                 (d)  Increase, Decrease
  8. When supply curve moves to  right, it means (a) Supply increases.                                    (b) Supply decreases.                     (c) Supply remains constant                        (d) None of the above
  9. Movements on the supply curve may be due to:                                                                                                                       (a) Change in price of goods                      (b) Change in price of related goods                                                       (c) Change in technology                            (d) None of the above
  10. A. The is a graphical presentation of the (a) Supply Curve, Demand Schedule              (b) Supply Curve, Supply Schedule       (c) Demand Curve, Supply Schedule               (d) None of these.
  11. In the book market, the supply of books will decrease if any of the following occurs except   (a) decrease in the the                                                                                                                                                        (a)                                       (a) A decrease in the number of book publishers.               (b) A decrease in the price of the book                       (c) An increase in the future expected price of the book.  (d) An increase in the price of paper used.
  12. If the demand is more than supply, then the pressure on price will be:                                                                               (a) Upward         (b)  Downward            (c) Constant               (d) None of the above
  13. Under conditions, Supply will be more than that under (a) Competitive, Monopolized                      (b) Monopolized, Competitive          (c) Monopolized, Oligopoly            (d) Duopoly, Monopolized
  14. Which of the following statement is correct?       (a) Supply is inversely related to its cost of Production          (b) Price and quantity demand of a goods have direct relationship                                                                            (c) Taxes and subsidy has no impact on the supply of the product                                                                               (d) Seasonal changes have no impact on the supply of the commodity
  15. In a very short period, the supply:                                                                                                                                                             (a) Can be changed                            (b) Cannot be changed                                                                                      (c) Can be increased                          (d) None of the above
  16. Supply is a concept.                                                                                                                                                             (a) Flow                 (b) Stock                  (c) Flow and stock, both                (d) Qualitative
  17. The supply of a good refers to:                                                                                                                                                    (a) Actual production of the good.               (b) Total existing stock of the good                                                                            (c) Stock available for sale   (d)  Amount of the good offered for sale at a particular price per unit of time
  18. The Slope of Indifference Curve is (a) Marginal Rate of Substitution              (b) Minimal Rate of Substitution               (c)  Average Rate of Substitution               (d) Total Rate of Substitution
  19. The scope of the indifference Curve show consumer equilibrium at point where MRS (xy)px/py (Price line).     (a) Less than                (b) More than                (c) Equal to                  (d) None of the above
  20. The consumer is in equilibrium at a point where the budget line:       (a) Is above an indifference curve.                             (b) Is below an indifference curve                                                                               (c) Is tangent to an indifference                                  (d) Cuts an indifference curve
  21. A higher indifference curve shows a higher level of satisfaction than a lower one. Therefore, a consumer, in his attempt to maximize satisfaction will try to reach the                                                                                  possible indifference curve.                                                                                                                                                                                (a) Highest       (b) Lowest              (c) Any of (a) or (b)              (d) None of these
  22. Which one of the following Statement is incorrect about Indifference Curve?                                                                     (a) Always Convex to the origin                 (b) Never intersects each other                                                                                 (c) Higher Curve represents higher level of satisfaction.          (d) It may touch X axis but never Y axis.
  23. In the above indifference map, which point gives highest satisfaction?                                                                                      (a) A                (b) B                       (c) C                         (d) Both (c) and (d)
  24. A point below the budget line of a consumer (a) Represents a combination of goods which costs the whole of consumer’s income                                                                                              (b) Represents a combination of goods which costs less than the consumer’s income.                                                      (c) Represents a combination of goods which is unattainable to the consumer given his/her money income.                                                                                                                                                                                                        (d) Represents a combination of goods which costs more than the consumer’s income.
  25. Indifference curve is L shaped then two goods will be:                                                                                                            (a) Perfect substitute goods                       (b) Substitute goods                                                                                                              (c) Perfect complementary goods             (d) Complementary goods
  26. Which of the following is not the property of indifference curve?                                                                                 (a) Slope downwards to the right               (b) Always convex to the origin                                                                                                               (c) Intersects each other                              (d) Will not touch either of the axes
  27. Marginal Utility Analysis is Concept.                                                                                                                                                                    (a) Cardinal           (b) Ordinal            (c) Sequential         (d) None of these

From the following data given below answer questions 29 and 30

Units TU MU
1 200  
2 180
3 480


  1. Total utility derived from 2nd unit?                                                                                                                                               (a) 380                (b) 20                  (c) 100                     (d) 280
  2. Marginal utility of 3 rd unit is?                                                                                                                                        (a) 200                (b) 280                    (c) 100                      (d) 50



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