Question # 1

Unit cost is another name for

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MC

AVC

ATC

AFC

x² - y² = 10 This function can be termed as .

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Expicit function

Implicit function

Linear function

Constant function

Laws of return apply to firms working in

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perfect competition

monopoly

small firm

all kinds of market situations

When marginal revenue is zero, total revenue is

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maximum

minimum

zero

decreasing

The maximum point of TP curve is at quantity of labour where

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Average physical product of labour is equal to 1

MPP of labour is at its maximum

curves of APP and MPP of labour intersect

MPP of labour is zero

Law of diminishing returns applies more in:

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Industry

Agriculture

Mining

Construction

When a competitive firm achieves long run equilibrium then

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P= MC

MR = MC

P = ATC

all of the above

Under monopoly the price is always equal to:

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AR

MR

MC

AVC

Why should employ units of a factor to a point where

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MP is negative

MP is equal to price of the factor

MP is positive

MP is rising

Economics is a science which studies.

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Distribution of income

Optimum use of scarce resources.

Production of wealth only

Exchange of wealth only

Which of the following is the subject matter of Economics.

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Optimum use of limited resources for the satisfaction of unlimited human wants.

Economic problems of the developing countries.

Labour problems.

Balance of payment problems.

This is capital

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money

forests

machinery

trademarks

Which of the following factors takes risk, innovates and coordinates

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capital

labour

bank

entrepreneur

Habib Bank limited means that.

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Its capital is limited

It shareholders are limited

The liability of each shareholders is limited

Non of the three

All factors of production are substitutable with each other. it is held by:

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Wicksteed

Hicks

Pareto

Only those goods are priced in the market which have:

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Utility

Sacrcity

Transferability

All of the above

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

A firm earns economic profit when total profit exceeds

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normal profit

implicit costs

explicit costs

variable costs

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

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Prof. Knight

Prof. Marshall

Prof. Robbins

Prof. Knees

The three broad types of productive resources are

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money, profit and interest

capital, labour and natural resources

labour, stock shares and deposits

technology, landl and markets

When supply rises more than demand price of the product will.

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Rise

Fall

Remain unchanged

Non of the three

Limited liability is one of the advantages of

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partnership

sole proprietor

joint stock company

cooperative society

A monopoly firm is in equilibrium when

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MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

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