JAMB Exam  >  JAMB Tests  >  Economics for JAMB  >  Test: The Theory of Supply - 3 - JAMB MCQ

Test: The Theory of Supply - 3 - JAMB MCQ


Test Description

10 Questions MCQ Test Economics for JAMB - Test: The Theory of Supply - 3

Test: The Theory of Supply - 3 for JAMB 2024 is part of Economics for JAMB preparation. The Test: The Theory of Supply - 3 questions and answers have been prepared according to the JAMB exam syllabus.The Test: The Theory of Supply - 3 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 - 3 below.
Solutions of Test: The Theory of Supply - 3 questions in English are available as part of our Economics for JAMB for JAMB & Test: The Theory of Supply - 3 solutions in Hindi for Economics for JAMB course. Download more important topics, notes, lectures and mock test series for JAMB Exam by signing up for free. Attempt Test: The Theory of Supply - 3 | 10 questions in 8 minutes | Mock test for JAMB preparation | Free important questions MCQ to study Economics for JAMB for JAMB Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: The Theory of Supply - 3 - Question 1

Which of the following is a determinant of supply elasticity?

Detailed Solution for Test: The Theory of Supply - 3 - Question 1

The determinants of supply elasticity include the price of the product, availability of substitutes, and production technology. These factors affect the responsiveness of quantity supplied to changes in price.

Test: The Theory of Supply - 3 - Question 2

Inelastic supply implies that the:

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

Inelastic supply means that the quantity supplied is not very responsive to changes in price. The percentage change in quantity supplied is smaller than the percentage change in price.

Test: The Theory of Supply - 3 - Question 3

The formula for calculating the price elasticity of supply is:

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

The price elasticity of supply is calculated by dividing the percentage change in price by the percentage change in quantity supplied. This formula helps measure the responsiveness of supply to changes in price.

Test: The Theory of Supply - 3 - Question 4

If the price elasticity of supply for a product is 1.5, it is considered:

Detailed Solution for Test: The Theory of Supply - 3 - Question 4

If the price elasticity of supply is greater than 1, it indicates that supply is elastic. This means that the percentage change in quantity supplied is greater than the percentage change in price, showing a relatively responsive supply to price changes.

Test: The Theory of Supply - 3 - Question 5

When supply is perfectly elastic, the elasticity coefficient is:

Detailed Solution for Test: The Theory of Supply - 3 - Question 5

When supply is perfectly elastic, it means that even a small change in price leads to an infinite change in quantity supplied. In this case, the elasticity coefficient is greater than 1, indicating an extremely responsive supply.

Test: The Theory of Supply - 3 - Question 6

Which of the following is an example of a product with inelastic supply?

Detailed Solution for Test: The Theory of Supply - 3 - Question 6

Crude oil is often considered an example of a product with inelastic supply. This is because it takes significant time and resources to increase oil production, making the quantity supplied less responsive to changes in price.

Test: The Theory of Supply - 3 - Question 7

Cross elasticity of supply measures the responsiveness of quantity supplied to a change in:

Detailed Solution for Test: The Theory of Supply - 3 - Question 7

Cross elasticity of supply measures how the quantity supplied of one good responds to changes in the price of a substitute good. It helps understand the relationship between the supply of different products in the market.

Test: The Theory of Supply - 3 - Question 8

If the cross elasticity of supply for two goods is negative, it suggests that they are:

Detailed Solution for Test: The Theory of Supply - 3 - Question 8

If the cross elasticity of supply for two goods is negative, it indicates that they are complementary goods. Complementary goods are typically consumed together, and a decrease in the price of one leads to an increase in the supply of the other.

Test: The Theory of Supply - 3 - Question 9

The price elasticity of supply tends to be greater in the long run because:

Detailed Solution for Test: The Theory of Supply - 3 - Question 9

The price elasticity of supply is generally higher in the long run. Producers have more time to adjust their production levels, they become more responsive to price changes, and there are fewer production constraints. These factors contribute to a higher elasticity of supply in the long run.

Test: The Theory of Supply - 3 - Question 10

When supply is perfectly inelastic, the elasticity coefficient is:

Detailed Solution for Test: The Theory of Supply - 3 - Question 10

When supply is perfectly inelastic, it means that the quantity supplied does not change regardless of the price. In this case, the elasticity coefficient is zero, indicating no responsiveness of supply to price changes.

162 videos|102 docs|66 tests
Information about Test: The Theory of Supply - 3 Page
In this test you can find the Exam questions for Test: The Theory of Supply - 3 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: The Theory of Supply - 3, EduRev gives you an ample number of Online tests for practice

Up next

162 videos|102 docs|66 tests
Download as PDF

Up next

Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!