Question # 1

Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is

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a shortage

a surplus

excess supply

loss

The reward of their services cannot be fixed

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wage earner

rent receiver

interest receiver

profit earner

Commercial economics are a pat of:

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Internal economics

External economics

Economies of scale

None of the three

Which of the following is correct with respect to resources

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Money is a capital good

Human skills are a labour input

Entrepreneur is part of the labour input

Natural resources include human input

Mr. Suleri bought 50 litters of petrol when his monthly income was Rs. 25000. Now his monthly income has risen to Rs. 50000 and he purchases 100 litres of petrol. His income elasticity of demand for petrol is

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1

100%

less than one

more than one

The shape of rectangular hyperbola is made by

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MC

AFC

AVC

TFC

A firm attains equilibrium under monopoly if:

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MC curve intersect MR curve from below. MC = AC = MR

MC curve intersects MR from above

Any one of the above situations

AR = MR

Members of business partnership in Pakistan are:

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2 to 20

5 to 20

2 to 25

2 to 3

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

Equilibrium price of a product is determined by:

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The gomverment

An industrialist

Market competition

An agriculturist

One of the following is not an assumption of law of supply.

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Political system should not changed

Cost of production should not changed

Production technique should not changed

Cost of raw material should not changed

The law of demand will not be apply in case of

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Inferior goods

Superior goods

Normal goods

Non of them

Select the correct statement

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Economics affects politics

Economics affects history

Geography affects economics

all of the above are true

A firm attains sub-normal profit under perfect competition when its:

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AR = P (Price)

AR < P

AC = P

AC < P

Which one of the following is a functional equation of demand:

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Q - 20 + 2P = 0

Q - 3 - 3P = 0

Q + -2P = 0

None of the three

Trade Unions in Pakistan are unable to get an increase in wage rates because of :

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Minimum wage law

Low labour efficiency

Capital intensive projects

Lack of Natural resources

He prepares the initial plan of the business

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capitalist

manager

entrepreneur

officer

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

A firm earns economic profit when total profit exceeds

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normal profit

implicit costs

explicit costs

variable costs

To measure changes in purchasing power of money, we use

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percentages

index numbers

averages

variables

Under perfect competition, demand for a factor is its

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MRP curve

ARP curve

TRP curve

TR - TC

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