Question # 1

The necessary condition for equilibrium of firm is

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AVC = AFC

AR = MR

MC = MR

TVC = TFC

If price changes by one % and supply changes by 2% then supply is

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elastic

inelastic

indeterminate

static

When total product falls, marginal product is.

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Zero

Positive

Negative

Falling

Utility of a product depends upon

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Knowledge

Ownership

Form

All of them

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

Which one is the third stage of production under law of variable proportions

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Decreasing average returns

Increasing average return

Negative marginal return

Increasing marginal return

When a competitive firm achieves long run equilibrium then

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P= MC

MR = MC

P = ATC

all of the above

Under perfect competition, demand for a factor is its

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MRP curve

ARP curve

TRP curve

TR - TC

As out put increases, AC curve

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falls

rises

remains constant

all of the above

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

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

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service

demand

utility

efficiency

If the price of a product increase from Rs. 12 per unit and as a consequence quantity demand of the product falls from 100 units to 50 units . The price elasticity of the product will be.

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2.5

0.5

1.5

3.5

Normally MR curve intersects MC curve at points

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1

2

3

4

He cannot be unemployed

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policeman

beggar

mikman

bank officer

If a public limited company issues bonds to increase resources, then it pays

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fixed premium to bond holders

fixed interest to bond holders

fixed tax to bond holders

fixed profit to bond holders

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

When the percentage change in quantity demanded is greater than the percentage change in price, elasticity of demand for the product will be.

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Equal to unity

Less than unity

Greater than unity

Equal to zero

A consumer's spending is restricted because of

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marginal utility

budget constraint

demand curve

unlimited wants

The minimum wage is an example of

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price floor

price ceiling

equilibrium wage

efficiency of labour

Market system means

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Socialism

Capitalism

a place where goods are traded

all of the above

If in a production process, all inputs are increased by 10% and output increase by less than 10%, then it is called

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economies of scale

diseconomies of scale

diminishing marginal returns

negative economies

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