Question # 1

In the business world

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a firm working under perfect competition wants to become a monopoly

a firm working under monopoly wants to become a competitive firm

monopoly price is always higher than competitive price

competitive price is always higher than monopoly price

Under perfect competition

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AC = AVC

AR = AC

AR = MC

AR= MR

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

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Rise

Fall

Remains unchanged

None of the three

Rotten eggs are

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free good

economic good

service

wealth

Buyers and sellers under perfect competition are.

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The same in number

Large in number

Small in number

None of the above

Since marginal land does not yield rent therefore:

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Rent is a part of piece

Rent is not a part of price

Rent determines price

None of the three

Who present the Arc Elasticity formula for the measurement of elasticity of demand.

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R.G.D Allen

Pareto

J.R. Hicks

Robbins

The demand for a product is inelastic. In order to increase government revenue, the finance minister will :

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Lower down the tax rate

Increase the tax rate

Not change the tax rate

Double the tax rate

The proportion of rural population in Pakistan is:

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68%

70%

72%

74%

Who was the founder of classical school of thought?

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Adam Smith

Marshall

Keynes

Maithus

If a person consumes goods X and Y maximises total utility, then MU per rupee from the two goods must be

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equal

unequal

increasing

decreasing

When AC curve rises, MC curve remains:

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Above AC

Below AC

Equal AC

Negative

Adam smith was a

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President of France

a modern economist

good sports man

classical economist

All materials goods which can satisfy humans wants are called.

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Non economic goods

Economic goods

Capital goods

Services

An example of money capital is

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cash

money in a savings account

prize bond

golden ring

How many types of organization

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5

6

7

8

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

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Wicksteed

Hicks

Pareto

A firms reaches its shut down point where:

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AC > AR

AC = AR

AC< AR

AVC = AR

Cross elasticity of Suzuki and Honda cars will be

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Positive

negative

zero

infinite

Perfect competition is a situation of market, where there are very large number of firms selling the same commodity are called

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Revenue curve under perfect competition

Monopoly curve

Total revenue curve

None of these

Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is

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10%

30%

3

1/3

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