CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 3April 8, 2026 Maven Leave a Comment Welcome to the CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 3 quiz! Name Email 1. Which of the following best defines supply in economics? Portion of stock a seller is willing to sell at a particular price in a particular market at a particular time Total stock of goods available with a seller Total quantity of goods produced by all firms in the market Quantity of goods demanded by consumers at a given price None 2. The law of supply states that when price rises: Supply falls Supply remains constant Supply rises Demand rises None 3. Which of the following is the correct supply function? Sx = f [Pn, Ps, Pc, Y, T] Sx = f [TFC, TVC, TC, MC] Sx = f [TP, AP, MP, L] Sx = f [Px, PI, T, W, GP] None 4. If the government imposes higher taxes on a commodity, the effect on supply will be: Supply increases Supply remains unchanged Supply decreases Supply becomes perfectly elastic None 5. When price rises and a producer hoards stock expecting prices to rise further, this affects supply by: Decreasing current supply Increasing current supply Making supply perfectly inelastic Making supply perfectly elastic None 6. The supply curve normally slopes: Downward from left to right Horizontal parallel to X axis Vertical parallel to Y axis Upward from left to right None 7. In the case of labour supply, the supply curve is: Upward sloping throughout Downward sloping throughout Backward bending at higher wages Horizontal at all wage levels None 8. When price rises from ₹50 to ₹70 and quantity supplied increases from 200 to 300 units, this is called: Increase in supply Decrease in supply Contraction of supply Extension of supply None 9. When a new supply curve is formed to the right of the original supply curve, it indicates: Contraction of supply Extension of supply Decrease in supply Increase in supply None 10. The supply curve for rare goods and land is: Vertical parallel to Y axis Horizontal parallel to X axis Downward sloping Upward sloping None 11. When price elasticity of supply is equal to zero, it means: Supply changes without any price change Price changes but supply remains constant Supply changes proportionately with price A small price change leads to a large supply change None 12. In the long run, elasticity of supply is: Less elastic than short run Equal to short run elasticity More elastic than short run Always perfectly inelastic None 13. If proportionate change in supply is more than proportionate change in price, elasticity of supply is: Es = 0 Es = 1 Es < 1 Es > 1 None 14. Which of the following will cause an increase in supply? Rise in input prices Introduction of better technology Higher taxes imposed by government Expectation of higher prices in future None 15. Market supply schedule is obtained by: Dividing individual supply of all sellers Multiplying individual supply by number of sellers Adding the individual supply of all sellers Taking the supply of the largest seller in the market None Time's upRelated Posts:CMA Foundation MCQ Quiz Economics Lesson 1.3 - Part 1CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 2CMA Foundation MCQ Quiz Economics Lesson 1.3 – Part 4CMA Foundation MCQ Quiz Economics Lesson 1.5 - Part 1
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