Question # 1

When demand is perfectly inelastic, an increase in price will result in

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decrease in total revenue

increase in total revenue

no change in total revenue

decrease in quantity demanded

A positive statement

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concerns what is

is always accurate

deals with values and opinions

cannot be tested in the real world

Which is a condition for existence of monopoly

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big size

identical product

absence of government taxes

no close substitute

As output increase, one of the following costs will also increase:

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Marginal cost

Average cost

Variable cost

Fixed cost

A ______ is something which is measurable and can take on different values

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Variable

Constant

Both a and b

None of these

Change in total cost on the production of one additional unit of output is calculated as .

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Marginal cost

Average cost

Total cost

Marginal product

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 of durable goods is

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less than unity

greater than unity

equal to unity

zero

One of the following is not an exception to the law of diminishing marginal utility .

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Money

Knowledge

Music

Non of them

Q_d = 12 - 2P

Q_s= -4 + 6P in this market model, P and Q are respectively.

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2 & 8

4 & 8

4 & 10

None of the three

Long period supply curve is

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relatively flatter

relatively steeper

more elastic

a and c of above

When price elasticity of demand for normal goods in calculated, the value is always

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positive

negative

constant

greater than one

Which of the following is capital

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toy of a child

plough of the farmer

calculator of the student

novel book in the library

The supply of perishable goods is.

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Elastic

Inelastic

Perfectly elastic

None of the above

The demand of a will expand when:

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Other things do not remain constant.

Price of the products changes.

Value of money falls.

None of the three

Which one is the small scale production.

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Bata shoe factory

A barber shop

kohinoor Textile Industries

Sufi soap

The market of cars is.

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International market

Regional market

Local market

Domestic market

Rotten eggs are

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free good

economic good

service

wealth

The method to measure the elasticity of demand by the unitary method was introduced by.

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Alfred Marshall

Robbins

Adam Smith

Malthus

The minimum wage is an example of

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price floor

price ceiling

equilibrium wage

efficiency of labour

Quasi rent

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is permanent

is temporary

arises in long run only

means high rent

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