Question # 1

One of the following NOT a assumption of the marginal productivity theory

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units of factor are homogeneous

mobility of factor

low price of factor

perfect competition

A variable is a symbol which, during a discussion, may assume different values or a set of admissible values. This is the definition of

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Prof. Kooros

Prof. Marshall

Prof. Rabbins

Prof. Kneez

A mechanism, or arrangement, which brings together buyers together buyers and sellers of particular goods or services are called

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Market

Revenue curve

Contact

None of these

Profits arise because an entrepreneur

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prepares plan

innovates

lends money

a and b of above

A seller can increase his sales revenue by charging a lower price, if the demand has

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e < 1

e = 1

e > 1

e = 0

Production of wealth takes place by:

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A combination of output

A combination of input

Labour only

Capital only

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

Natural environment that supports production of goods and services is included in

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labour

money

capital

land

Every factor of production gets reward equal to

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value of average product

value of marginal product

value of total product

total revenue

The government constructed a new water reservoir for the purpose of irrigation; this might be taken as

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increase in supply of capital

increase in supply of land

increase in supply of land and supply of capital

increase in natural resources

Food, Shelter and clothing are:

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Necessities

Comfort

Luxuries.

None of three

All factors of productions are variable in the:

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Marked period

Short period

long period

None of the three

The supply price of land is considered to be zero because .`

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Its supply is limited

Its supply is infinity

In aggregate sense its cost of production s zero

Its demand is limited

With a fall in price quantity demand changes in such a way that total expenditure of the consumer remain constant, elasticity of demand will be.

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Equal to unity

Greater than unity

Less than unity

Equal to zero

Given the demand curve, a rise in supply will.

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Increase quantity supplied

Price will fall

Price will rise

Both (a) and (b)

A firm attains equilibrium under monopoly if:

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MC curve intersect MR curve from below. MC = AC = MR

MC curve intersects MR from above

Any one of the above situations

AR = MR

These are kinds of capital EXCEPT

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fixed capital

expensive capital

working capital

real capital

In short period how many possibilities in which a firm may find itself

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four

five

six

seven

When total product rises marginal product.

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Remains the same

Falls

Also rises

None of the three

All the following are U-shape except

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AVC

AFC

AC

MC

One of the following is not a characteristics of economic laws.

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Economic laws lack exactitude

Economic laws lack predictability

They are not universa!

They are not optional

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