Question # 1

The product which have close substitute their demand is always.

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More elastic

Perfectly elastic

Perfectly inelastic

Less elastic

The price of an non-economic good is:

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Very low

Very high

Zero

Negative

This is the assumption of law of demand

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price of the commodity should not change

Quantity demanded should not change

Price of substitutes should not change

Demand curve must be linear

When diseconomies of scale outweigh economies of scale the

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long run AC curve rises

marginal cost falls

long run ATC curve falls

AVC falls

In Pakistan rate of labour participation is

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13%

23%

33%

43%

Which of the following is capital

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toy of a child

plough of the farmer

calculator of the student

novel book in the library

The utility of durable consumer goods.

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Diminishes with the passage of time

Perishes, if not used

Can be obtained constantly

None of the three

The correlation between average wage (AW) and marginal wage (MW) under perfect competition is .

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AW = MW

AW > MW

AW < MW

None of the three

Excise tax is a part of

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fixed cost

variable cost

implicit cost

in not a part of cost

If demand is inelastic, a change in the price

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will change the quantity in same direction

will change total revenue in same direction

will change total revenue in the opposite direction

will not change quantity

Law of substitution is another name for

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law of diminishing MU

law of equi-MU

law of demand

law of satisfaction

Adam Smith wrote a book entitled "An enquiry into the nature and causes of wealth of nation" in.

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1784

1792

1776

1796

A firm earns economic profit when total profit exceeds

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normal profit

implicit costs

explicit costs

variable costs

y = 20-5 x this function is.

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Increasing function

Decreasing function

Constant function

Exponential function

Which statement is true?

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Economics is a physical and normative science

Economics is a social and natural science

Economics is physical and positive science

Economics is a social and normative science

Supply of a commodity means

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willingness to sell a certain quantity

physical stocks available

planned production

total production in a given period

Interest is paid because

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capital is scarce

capital is productive

capital is attractive

a and b of above

Who present the Arc Elasticity formula for the measurement of elasticity of demand.

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R.G.D Allen

Pareto

J.R. Hicks

Robbins

If demand is unitary elastic, a 25% increase in price will result in

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25% change in total revenue

no change in quantity demanded

1% decrease in quantity demanded

25% decrease in quantity demanded

Law of diminishing returns applies more in:

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Industry

Agriculture

Mining

Construction

The demand for a factor is called.

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Composite demand

Joint demand

derived demand

No demand

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