Question # 1

A positive statement

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concerns what is

is always accurate

deals with values and opinions

cannot be tested in the real world

When a competitive firm faces loss the slop of its MR curve is:

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Negative

Positive

Zero

Unity

Increasing the minimum wage for workers will

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solve the unemployment problem

result in scarcity of workers

cause substitution of capital for labour

decreases the MP of those workers

Which of the following is NOTa characteristic of perfect competition?

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free entry and exit of the firm

demand curve of a firm is horizontal

marginal revenue curve is horizontal

individual firm can influence the price

Common market of SAARC countries will be called:

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International market

National market

Regional market

None of the three

As output increase, one of the following costs will also increase:

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Marginal cost

Average cost

Variable cost

Fixed cost

The following affect rent EXCEPT

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better location

fertility of land

cleverness of landlords

scarcity of land

If supply rises more than demand, price of the product will.

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Fall

Rise

Not change

Change

Scarcity means

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non availability of goods

high price of goods

less supply than demand

high profit of the firms

Supply curve

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is vertical in long run

is flatter in long run

is same in long and short run

is horizontal in both short and long run

If elasticity of demand is very low it shows that the commodity is

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a necessity

a luxury

has little importance in total budget

a and c above

Power of a product which can satisfy human want is.

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Utility

Total utility

Average utility

Marginal utility

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

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an advertising campaign is successful in promoting the good

a new technique makes it cheaper to produce the good

the government introduces a tax on the good

the price of raw materials increases

Elasticity of demand in case of minor change in price and quantity demand will be .

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Income elasticity of demand

Cross elasticity of demand

Point elasticity of demand

Arc elasticity of demand

A variable is a symbol which, during a discussion, may assume different values or a set of admissible values. This is the definition of

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Prof. Kooros

Prof. Marshall

Prof. Rabbins

Prof. Kneez

Which one is the small scale production.

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Bata shoe factory

A barber shop

kohinoor Textile Industries

Sufi soap

With an increase in wage rate supply of labour.

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Decrease

Increase

Remains constant

None of the three

Marginal revenue is always less than price at all levels of output in

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perfect competition

monopoly

both A and B

none of the above

The major difference between perfect competition and monopolistic competition is

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unity of frims

differentiated product

rate of profit

free exit and entry

Professor Knight is famous for his theory of

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rent

profit

population

wages

The concept of internal and external economics was given by.

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Adam Smith

Robbins

J.M.Keynes

Alfred Marshall

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