Question # 1

If a firm increases the ratio of capital to labour, it becomes more

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labour intensive

capital intensive

output intensive

input intensive

When demand is perfectly elastic, an increase in supply will result in

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decrease in quantity sold

increase in quantity sold

fall in price

b and c above

If the supply of land is assumed to be perfectly inelastic which of the following rent will it yield.

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Scarcity rent

Differential rent

Quasi rent

Scarcity rent

In the second stage of the law of variable of proportions the average product:

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Rises

Remains constant

Falls

None of the three

Price elastic of demand measures

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change in price caused by changes in demand

the rate of change of sales

the responsiveness of demand to price changes

the value of sales at a given price

In the long-run a competitive firms attains only:

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Normal profit

Super Normal profit

Sub-Normal profit

Marginal cost

One of the following is not land.

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Sui gas

Electric power

Atlantic Ocean`

A river

To reduce unemployment the govt. may

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reduce money supply

reduce mobility of labour

reduce minimum wages

increase government spending

The quality of commodity that satisfies some human want or need is called

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service

demand

utility

efficiency

Which statement is true

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ATC + AVC = AFC

ATC + MC = AFC

ATC + AFC = AVC

AFC + AVC = ATC

The products which are not priced in the market are called .

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Economic goods

Non-economic goods

Merit goods

Social goods

Which of the following is a producer good

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pen

cycle

mobile phone

hammer

When AC curve rises, MC curve remains:

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Above AC

Below AC

Equal AC

Negative

If price is set above equilibrium level, there will be

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surplus commodity in the market

shortage of commodity in the market

supply curve will shift

demand curve will shift

One of the following is not a part of macro economics.

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Public finance

International trade.

Consumer behaviour.

National income.

Production in economic means

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factors of production

doing some job

output of goods

profit

Adam smith was a

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President of France

a modern economist

good sports man

classical economist

Given the supply curve, a fall in demand will.

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Increase equilibrium quantity of the product

Decrease equilibrium quantity of the product

Not affect equilibrium quantity

Not affect equilibrium price

Who is unemployed

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housewife

college student

a peer who lives on gifts from mureeds

a freshly graduated engineer who is searching for a job

Which one is not doing an economic activity.

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One who is offering prayers.

One who works for wage.

One who rents out his property .

One who is an employee of Government

An entrepreneur is a person who performs the dual function of risk-taking and control. This is the definition of

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