Question # 1

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

Which one is not determinant of demand

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tastes

income

method of production

price

Optimum population is defined by the economists as the level of population at which

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death rate equals birth rate

labour productivity is maximized

country achieves food self sufficiency

national income per head is maximesed

It describes the law of supply

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supply curve

supply schedule

supply equation

all the three

Marginal revenue of a monopolist is

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equal to price

greater than price

less than price

increases with output

Land means

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sea

surface of earth

natural forests

all natural resources

When a competitive firm achieves long run equilibrium then

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P= MC

MR = MC

P = ATC

all of the above

An increases in demand would cause supply curve to

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shift to the left

shift to the right

change in slope of supply curve

no effect on supply

Extent of market mainly depends upon.

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Availability of means of transport and communication

Nature of supply

Government restriction

Perishable goods

A monopoly generally

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allocates resources in a socially optimal way

encourages greater income equality

encourages greater efficiency

produces less quantity than the quantity which minimies average cost

Marginal land or no rent land is the land which:

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Covers the cost of productions only

Determines rent of the superiorlands

Both a & b

None of the three

The following is NOTa factor of production

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labour

entrepreneurship

land

money

In economics, one or more persons sharing common consumer budget is called

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social group

consumer union

organisation

household

One of the cause of low wage rate in Pakistan is:

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Population explosion

Labour policy

Lack of monility of labour

Lack of natural resources

In May 2012, firm was supplying 1000 kg of sugar at market price of Rs. 60/- per kg. During June 2012, firm's supply of sugar had decreased to 900 kg at price Rs. 40/- per kg. These changes show that supply of sugar is

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Perfectly elastic

Perfectly inelastic

Less elastic

More elastic

Equilibrium of consumer is explained by

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negative utility

positive utility

marginal utility

profit

A firm decides to shut down production temporarily when

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MC start rising

AC stat rising

price = AC

price falls below AVC

To the economist, investment refers to

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sale of real estate

creation of new capital

purchase of a prize bond

decrease in inventories

The kind of market is undesirable

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general market

specialized market

local market

monopoly market

For production of goods we need factors

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few

2

4

unlimited

Professor Knight is famous for his theory of

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rent

profit

population

wages

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