11. Effective supply is the total amount of a commodity
- A. from a single producer
- B. in the warehouse of producers
- C. offered for sale at a market place
- D. produced for the market
Reveal Answer
12. Price elasticity of supply can be influenced by the following factors except?
- A. time period
- B. cost of production
- C. size of consumer income
- D. nature of the product
Reveal Answer
13. Increase in the supply of a product can be caused by?
- A. change and taste and fashion of consumers
- B. increase in the income of consumers
- C. a fall in the cost of production
- D. increase in the price of a product
Reveal Answer
14. A rational consumer will purchase a product whose price is?
- A. greater than his marginal utility
- B. less than his marginal utility
- C. equal to his marginal utility
- D. equal to his total utility
Reveal Answer
15. A parallel markets are usually the results of
- A. excess supply
- B. the activities of rich individuals
- C. price legislation
- D. inadequate information
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16. Another term for equilibrium price is?
- A. price floor
- B. demand price
- C. market clearing price
- D. satisfactory price
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17. When a firm is enjoying internal economies of scale, its?
- A. total cost of production is increasing
- B. average fixed cost is rising continuously
- C. average cost of production decreases as output increases
- D. average revenue and marginal revenue are decreasing
Reveal Answer
18. The specialization of labour enhances production because people?
- A. can concentrate on all goods
- B. can efficiently produce their own needs
- C. can save time and produce more
- D. become experts in all areas of production
Reveal Answer
19. Which of the following can be added to a firm’s profit to obtain total revenue
- A. total variable cost
- B. total fixed cost
- C. marginal cost
- D. total revenue
Reveal Answer
20. The amount of money that a firm recieves from the sales of its output is called
- A. total profit
- B. total revenue
- C. total cost
- D. average revenue
Reveal Answer
