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31.

If price changes by 1% and supply changes by 2% then supply is:

A.	Elastic	B.	Inelastic
C.	Indeterminate	D.	Static

32.

If elasticity of supply is greater than one. Supply curve will be:

A.	Horizontal	B.	Vertical
C.	Passing through origin	D.	Touching y-axis

33.

Supply surve:

A.	Is vertical in long run	B.	Is flatter in long run
C.	Is same in long and short run	D.	Is horizontal in both short and long run

34.

During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to:

A.	Rightward	B.	Leftward
C.	Downward	D.	Rise in supply

35.

When supply of a commodity increases without change in price it is called:

A.	Fall in supply	B.	Expansion in supply
C.	Contraction in supply	D.	Rise in supply

36.

In May 2013, firm was supplying 500kg of sugar of market price of Rs. 30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price Rs. 20/- per kg. These changes show that supply of sugar is:

A.	Perfectly elastic	B.	Perfectly inelastic
C.	Less elastic	D.	More elastic

37.

What best explains a shift in market supply curve to the right?

A.	An advertising campaign is successful in promoting the good	B.	A new technique makes it cheaper to produce the good
C.	The government introduces a tax on the good	D.	The price of raw materials increases

38.

Economic problems arise because:

A.	Wants are unlimited	B.	Resources are scarce
C.	Scarce resources have alternative uses	D.	All of the above

39.

Which is not an essential condition for an economic problem to arise?

A.	Unlimited wants	B.	Use of money
C.	Scarcity of resources	D.	Alternative uses of scarce resources

40.

Which is not a central problem of an economy?

A.	What to produce	B.	How to produce
C.	How to maximize private profit	D.	For whom to produce