Test: Supply

Question 1

If a seller has 50 tonnes of sugar in stock but is willing to sell only 30 tonnes at Rs. 37 per kg, what is the supply?

Accepted Answer

30 tonnes

Answer

20 tonnes

Answer

50 tonnes

Answer

37 tonnes

Question 2

What is the relationship between the price of a commodity and its individual supply?

Accepted Answer

There is a positive correlation.

Answer

There is a negative correlation.

Answer

There is no correlation.

Answer

The relationship is inverse.

Question 3

How is supply defined?

Accepted Answer

The quantity of a commodity that a firm is willing and able to offer for sale at various prices during a specific timeframe.

Answer

The total quantity of a commodity sold by a firm.

Answer

The total quantity demanded in the market.

Answer

The total quantity of a specific commodity available in the market.

Question 4

What does the term "stock" refer to in the context of supply?

Accepted Answer

The total quantity of a specific commodity available with a firm at a particular moment.

Answer

The total quantity demanded in the market.

Answer

The total quantity supplied in the market.

Answer

The total quantity of a commodity sold by a firm.

Question 5

How does an increase in the price of factors of production affect individual supply?

Accepted Answer

It decreases commodity production.

Answer

It increases commodity production.

Answer

It has no effect on commodity production.

Answer

It decreases individual supply.

Question 6

What is the impact of technological progress on individual supply?

Accepted Answer

It decreases production costs and shifts the individual supply curve rightward.

Answer

It decreases production costs and shifts the individual supply curve leftward.

Answer

It increases production costs and shifts the individual supply curve rightward.

Answer

It increases production costs and has no impact on individual supply.

Question 7

How does a unit tax influence individual supply?

Accepted Answer

An increase in unit tax raises production costs, shifting the individual supply curve leftward.

Answer

An increase in unit tax raises production costs, shifting the individual supply curve rightward.

Answer

A decrease in unit tax lowers production costs, shifting the individual supply curve leftward.

Answer

A decrease in unit tax raises production costs, shifting the individual supply curve rightward.

Question 8

What is the supply function in economics?

Accepted Answer

A mathematical expression elucidating the connection between the quantity supplied of a product or service, its price, and additional factors.

Answer

A graphical representation of the law of supply.

Answer

The total quantity of a commodity available in the market.

Answer

A measure of the quantity of goods produced.

Question 9

What is the impact of an increase in the price of other goods on individual supply?

Accepted Answer

It increases individual supply.

Answer

It decreases individual supply.

Answer

It has no impact on individual supply.

Answer

It depends on the nature of the goods.

Question 10

What are some key determinants of supply?

Accepted Answer

All of the above.

Answer

Organizational objectives, cost of production factors, and technological advancements.

Answer

Market expectations, number of producers, and environmental conditions.

Answer

The commodity's price, governmental policies, and prices of other commodities.

Supply - Free MCQ Practice Test with solutions, SSC CGL

MCQ Practice Test & Solutions: Test: Supply (10 Questions)