Question # 1

The transformation of resources into economic goods and services is called

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technical efficiency

input

production

increasing returns

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

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service

demand

utility

efficiency

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 elasticity of demand of durable goods is

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less than unity

greater than unity

equal to unity

zero

Three basic economics problems are

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what, how and for whom

why, where and when

what, which and how much

what, which and why

Only those goods are priced in the market which have:

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Utility

Sacrcity

Transferability

All of the above

These are kinds of rent EXCEPT

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differential rent

scarcity rent

mobility rent

location rent

One of the following is not assumption of the marginal productivity theory.

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All factors of production are present substitutes of each other.

Law of increasing return applies in the production process.

There is perfect mobility of factor of production

Units of each factors of production are identical

We establish ______ conditions for equilibrium

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2

3

4

5

With a fixed in the market period, if the demand of a product rises, then:

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Price will fall

Price will rise

Price will remain the same

None of the three

Marginal revenue of a monopolist is

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equal to price

greater than price

less than price

increases with output

In case of monopoly

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marginal revenue curve always slopes upward

total revenue curve always slopes upward

marginal revenue is always equal to average revenue

marginal revenue is always less than average revenue

One of the following will not cause a rise and fall on demand.

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Change in income

Change in weather

Discovery of a substitute

Distribution of income remaining the same

In which year Alfred Marshall wrote a book entitled "Principle of economics"

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1850

190

1870

1890

In factor market, which statement is true

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wages are determined by MP

Rent is fixed by landlords

interest rate is determined by Govt.

profit is determined by luck

The long run average cost curve is tangent to various

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short run TCs

short run ACs

AVCs

AFCs

Initial utility of a product is :

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Highest

Lowest

Conatant

None of them

Marginal revenue is always less than price at all level of output in

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perfect competition

monopoly

both a and b

none of the above

Which one will be termed as supply of a product.

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One tone potato in cold storage

One ton rice offered for sale in market

One ton rice brought for sale in market at a certain price.

None of the three

Rent is calculated from

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most superior land

most inferior land

marginal land

uncultivable land

They are included in labour expect

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college principle

professors

office clerk

students

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