• #### 1.  The elasticity of a straight line supply curve originating from the centre of origin is:

• Less than unity,
• greater than unity
• equal to unity
• equal to zero
• #### 2.  When supply increases more with a result of small increase in price, the nature of supply will be :

• Elastic
• Inelastic
• Perfectly Elastic
• Perfectly Inelastic
• #### 3.  When the proportionate change in the supply of goods is more than the proportionate change in its price, the elasticity of supply will be:

• Less than Unit
• Equal to Unit
• Greater than Unit
• Infinite
• #### 4.  If the price of the goods rises by 60% and supply increases by only 5%, the supply of goods will be :

• Highly Elastic
• Elastic
• Inelastic
• Perfectly Inelastic
• #### 5.  The measurement of the elasticity of supply is expressed as:

• $$\frac { ΔQ_s/Q_s }{ ΔP/P }$$
• $$\frac { Q_s }{ ΔP }$$. $$\frac { 1 }{ P }$$
• $$\frac { Q_s }{ Q_s }$$. ΔY
• $$\frac { ΔP }{ Q_s }$$. $$\frac { P }{ ΔQ_s }$$

• Two
• Three
• Four
• Five
• #### 7.  Fixed cost is also known as:

• Variable cost
• Actual cost
• Supplementary cost
• Short-term cost
• #### 8.  Supply falls on the same price when:

• Where there is decrease in supply
• When there is contraction in supply
• When supply increases
• When there is expansion in supply.
• #### 9.  Active factor of production:

• Capital
• Labour
• Land
• None of these.
• #### 10.  In the short-run following factors are included in the process of production:

• Fixed factors
• Variable factors
• Both (a) and (b)
• None of these.
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