Question # 1

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 firms reaches its shut down point where:

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AC > AR

AC = AR

AC< AR

AVC = AR

Power of a product which can satisfy human want is.

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Utility

Total utility

Average utility

Marginal utility

Ceteris paribus means

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other things equal

all variable are independent

all relationships are inverse

that no other assumptions are made

When marginal is negative, it must be true that

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the average is negative

the average is decreasing

the total is negative

the total is decreasing

Wealth of Nations was written in

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1976

1876

1776

1676

Total cost = Total variable cost in the.

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Marked period

Short run

Long run

None of the three

Marshall wrote the book

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Introduction to economics

Principles of economics

Classical economics

Micro economics theory

Price determined in case of a perishable good will be.

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Normal price

Market price

Short run price

Long run price

If equilibrium price rises but equilibrium quantity is unchanged, the cause is

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supply and demand both increase equally

supply and demand decrease equally

supply curve is vertical and demand increases

supply increases and demand is same

The demand for a factor is called.

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Composite demand

Joint demand

derived demand

No demand

Underemployment of labour means

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a worker does not get full time job

a worker is not happy with present job

a person does not get job according to his qualification

a and c of above

Haris has a special taste for chicken rolls of college canteen. The owner of the canteen doubles the price of chicken roll. Haris did not respond to the increase in prices and kept on demanding the same quantity of chicken roll. His demand for chicken roll is

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perfectly elastic

perfectly inelastic

elastic

less elastic

A monopoly firm is in equilibrium when

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MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

A short period market is the market of.

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Perishable goods

Durable goods

Consumer goods

Capital goods

Profits arise

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only in monopoly

because of uncertainty

shortage of goods

like interest

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

The rent which is paid in the short run due to perfectly inelastic supply of a factor is known as.

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Deffertial rent

Economic rent

Quasi rent

Scarcity rent

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

He prepares the initial plan of the business

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capitalist

manager

entrepreneur

officer

A decrease in demand causes the equilibrium price to

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rise

fall

remain constant

indeterminate

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