Question # 1

The elasticity of demand for a product is less than unity. Therefore, with a fall in its price, total expenditure of consumer will.

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Fall

Rise

Remain the same

Fluctuate

A firm should shut down in the short run if it is not covering its

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variable cost

fixed cost

total cost

explicit cost

Assumptions of a law are called:

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Constant

Parameters

Variables

Dependent variable

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

Marshall wrote the book

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Introduction to economics

Principles of economics

Classical economics

Micro economics theory

Normal profit is

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part of total cost

part of economic profit

part of fixed cost

total revenue minus total cost

Productivity of capital depends upon

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quality of labour

quality of raw materials

quality of management

all of the above

If we know that quantities bought and sold are equal, we can conclude that

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quantities demanded and supplied are also equal

the market is in equilibrium

there will be no tendency for a price change

all of the above

Saqib graduated one month ago. He is still unemployed. His unemployment is

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structural

frictional

seasonal

personal

A firm under perfect competition is

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price maker

price breaker

price taker

price shaker

MC is given by slope of

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TFC

TC

ATC

AVC

Which type of problems are brought under discussion in micro economics .

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Consumer's behaviour

International trade

Balance of payment

Public finance

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

Short run cost curves are.

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v-shaped

Dish-shaped

U-shaped

L-shaped

Economies of scale

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occur when increase in input less than proportionate increase in output

suggest that firm's marginal cost curve lies above its average cost curve

suggest that the firm's marginal cost curve is declining

occur when average cost is falling

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

A contour line which slopes downward from left to right and yield equal level of satisfaction to consumer with the given income is.

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Negatively slop curve

An indifference curve

Positively sloped Curve

None of the above

The concept of internal and external economics was given by.

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Adam Smith

Robbins

J.M.Keynes

Alfred Marshall

All inputs can be varied in

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short run

long run

both periods

non of the period

Labour input includes

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inventor

innovator

unskilled worker

all of the above

Irrespecitve of price, Somia always spends Rs. 100 a week on ice cream, we conculde that

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elasticity of demand is 0

elasticity of demand is 1

elasticity of demand id infinite

law of demand has been violated

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