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Test: The Theory of Supply - 2 - JAMB MCQ


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10 Questions MCQ Test Economics for JAMB - Test: The Theory of Supply - 2

Test: The Theory of Supply - 2 for JAMB 2024 is part of Economics for JAMB preparation. The Test: The Theory of Supply - 2 questions and answers have been prepared according to the JAMB exam syllabus.The Test: The Theory of Supply - 2 MCQs are made for JAMB 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: The Theory of Supply - 2 below.
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Test: The Theory of Supply - 2 - Question 1

Which type of supply occurs when two or more goods are supplied together as a package and are consumed together?

Detailed Solution for Test: The Theory of Supply - 2 - Question 1

Joint supply refers to the simultaneous supply of two or more goods that are produced together and consumed together. These goods are interrelated and cannot be easily separated. For example, milk and cheese or crude oil and gasoline are considered joint supply goods.

Test: The Theory of Supply - 2 - Question 2

When an increase in the price of one good leads to an increase in the supply of another good, it is an example of:

Detailed Solution for Test: The Theory of Supply - 2 - Question 2

When an increase in the price of one good results in an increase in the supply of another good, it signifies a complementary relationship between the two goods. This type of supply is known as complementary supply. For instance, if the price of coffee rises, the supply of creamer may also increase as people tend to consume more coffee with creamer.

Test: The Theory of Supply - 2 - Question 3

In which type of supply are goods considered substitutes for one another?

Detailed Solution for Test: The Theory of Supply - 2 - Question 3

Competitive supply occurs when different goods are considered substitutes for one another. In this case, an increase in the supply of one good leads to a decrease in the supply of another. For instance, if the price of butter increases, suppliers may switch to producing margarine instead, resulting in a decrease in the supply of butter.

Test: The Theory of Supply - 2 - Question 4

Two goods, X and Y, are supplied together in fixed proportions. This is an example of:

Detailed Solution for Test: The Theory of Supply - 2 - Question 4

When two goods, X and Y, are supplied together in fixed proportions, it represents a joint supply. These goods are produced using the same inputs and are typically consumed together. An example of joint supply can be seen in the production of beef and leather, where both goods are obtained from cattle.

Test: The Theory of Supply - 2 - Question 5

Which type of supply occurs when goods are produced and supplied by different producers who compete against each other?

Detailed Solution for Test: The Theory of Supply - 2 - Question 5

Competitive supply refers to the situation where different producers produce and supply similar goods, competing against each other in the market. These goods are substitutes, and an increase in the supply of one good may lead to a decrease in the supply of another as producers allocate resources accordingly to meet market demands.

Test: The Theory of Supply - 2 - Question 6

If the price of product X increases, causing the supply of product Y to decrease, what type of relationship exists between X and Y?

Detailed Solution for Test: The Theory of Supply - 2 - Question 6

When an increase in the price of one good leads to a decrease in the supply of another good, it signifies a complementary relationship between the two goods. Therefore, the correct answer is D) Complementary supply. This relationship implies that the goods are used together, and changes in the price of one affect the supply of the other.

Test: The Theory of Supply - 2 - Question 7

When goods are supplied together and are used in combination to satisfy a particular want, it is known as:

Detailed Solution for Test: The Theory of Supply - 2 - Question 7

Composite supply refers to the situation where goods are supplied together and are used in combination to satisfy a specific want or need. These goods are interdependent and cannot be easily separated. An example of composite supply is the supply of cars and gasoline, as cars require gasoline to function.

Test: The Theory of Supply - 2 - Question 8

If the price of good X increases, causing the supply of good Y to increase, what type of relationship exists between X and Y?

Detailed Solution for Test: The Theory of Supply - 2 - Question 8

When an increase in the price of one good leads to an increase in the supply of another good, it signifies a composite relationship between the two goods. Therefore, the correct answer is B) Composite supply. This relationship implies that the goods are used together, and changes in the price of one affect the supply of the other.

Test: The Theory of Supply - 2 - Question 9

In which type of supply are goods produced using a common factor of production?

Detailed Solution for Test: The Theory of Supply - 2 - Question 9

Joint supply occurs when goods are produced using a common factor of production. In this type of supply, two or more goods are produced together because they require the same resources or inputs. For example, wool and mutton are joint supply goods produced from sheep.

Test: The Theory of Supply - 2 - Question 10

When an increase in the price of one good leads to a decrease in the supply of another good, it is an example of:

Detailed Solution for Test: The Theory of Supply - 2 - Question 10

When an increase in the price of one good leads to a decrease in the supply of another good, it indicates a competitive relationship between the two goods. Therefore, the correct answer is A) Competitive supply. This relationship implies that the goods are substitutes, and changes in the price of one affect the supply of the other.

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