Question # 1

The human effort applied to the production of goods is called in economics

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labour

skill

experience

services

For an individual farmer, rent paid by him

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is part of cost and affects price of his product

does not enter into price of his product

is unjustified

cannot be determined

q = 4 + 2P it is a functional equation of.

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Demand

Supply

Equilibrium of demand as supply

None of the three

Utility is most closely related to the term

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useful

useless

necessary

satisfaction

Debenture holders recive.

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Interest

Wages

Dividend

Profit

Change in total cost on the production of one additional unit of output is calculated as .

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Marginal cost

Average cost

Total cost

Marginal product

Which one is increasing function of price

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demand

utility

supply

consumption

Standard of living of a country can be raised if it increases

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labour force

production

money supply

exports

Economies and diseconomies of scale determine the shape of

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long run AC curve

short run AC

average fixed cost

none of the above

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

In the business world

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a firm working under perfect competition wants to become a monopoly

a firm working under monopoly wants to become a competitive firm

monopoly price is always higher than competitive price

competitive price is always higher than monopoly price

Extension of supply will take place as a consequence of:

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Change in price

Change in population

Change in technology

Change in money supply

When the supply curve of a product is parallel to the vertical axis, it would mean that;

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Different quantities of a product are supplied at the same price.

Different quantities of a product are supplied at different price.

Same quantities of a product are supplied at different price.

None of three

The word "LIMITED" at the end of a firm's name means

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it produces only commodity

has limited capital

cannot have more than 100 members

shareholders liability to pay debt of firm cannot exceed value of their investment

The supply of labour is based on the trade off between leisure and

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wealth

work

wages

price of product

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

The price of a product double due to which its quantity demand falls to one half. The elasticity of demand for product will be:

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Equal to unity

Lass than unity

Greater than unity

Equal to zero

The utility of an additional unit of a product is

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Law of demand

Law of substitution

Law of supply

Law of diminishing marginal utility

If demand is inelastic, a change in the price

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will change the quantity in same direction

will change total revenue in same direction

will change total revenue in the opposite direction

will not change quantity

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

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Marginal cost

Average cost

Variable cost

Fixed cost

Land means

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sea

surface of earth

natural forests

all natural resources

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