Question # 1

The demand of a commodity having many substitutes is

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more elastic

less elastic

zero elastic

infinite elastic

Professor Knight is famous for his theory of

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rent

profit

population

wages

The extent of market depends upon

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Means of transport and communication

Political instability

Economics instability

Trade restriction

TC

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starts from origin

not from origin

is parallel to y-axis

parallel to x- axis

The supply of land is fixed whereas its Demand is increase day by day, the rent Produced in this way is:

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Differential rent

Scarcity rent

Quasi rent

Economic rent

Joint stock company is manged and run by a

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Board of Directors

Shareholders

Accountant

None of these

The main object of trade unions is to:

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Strength the bargaining position of labour

Get jobs for the employed persons

Get recreational facilities

Get free meals

A firm decides to shut down production temporarily when

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MC start rising

AC stat rising

price = AC

price falls below AVC

Which one is increasing function of price

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demand

utility

supply

consumption

The first law of consumption was presented by.

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Robert Malthus

Loinel Robbins

Alfred Marshall

Pareto

A monopoly firm is in equilibrium when

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MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

Optimum population is defined by the economists as the level of population at which

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death rate equals birth rate

labour productivity is maximized

country achieves food self sufficiency

national income per head is maximesed

Choose the correct establish condition for equilibrium

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MR = MC

MC intersects MR curve from below

MC + MR

Both a and b

Scarcity exists

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in only poor countries

in a country that uses resources inefficiently

in all countries of the world

when society produces unimportant goods

Long-run price of a durable good is always less than its short run price . it is because.

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Long -run supply is more elastic than short-run supply curve.

Long -run supply is less elastic than short-run supply curve.

Long and short-run supply curves are equally elastic

None of the three

When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product(MP) of labour falls but the average product(AP) of labour rises. This can be explained by the factors that

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MP of labour is grater than AP of labour

additional workers are more efficient

MP and AP are equal

AP is maximum

A decrease in demand causes the equilibrium price to

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rise

fall

remain constant

indeterminate

Scarcity means

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non availability of goods

high price of goods

less supply than demand

high profit of the firms

The minimum wage is an example of

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price floor

price ceiling

equilibrium wage

efficiency of labour

Price and demand are positively correlated in case of

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necessities

comforts

Giffen goods

Luxuries

Law of diminishing marginal utility provides basis for:

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Law of demand

Law of supply

Laws of returns

Law of variable proportions

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