Question # 1

When price is fixed below equilibrium level, there will be

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surplus commodity in the market

shortage of commodity in the market

supply curve will shift

demand curve will shift

With a fall in the price of a Giffen good or inferior good its quantity demand will.

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Fall

Rise

Remain unchanged

None of three

Given the supply curve, a fall in demand will.

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Increase equilibrium quantity of the product

Decrease equilibrium quantity of the product

Not affect equilibrium quantity

Not affect equilibrium price

The maximum point of TP curve is at quantity of labour where

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Average physical product of labour is equal to 1

MPP of labour is at its maximum

curves of APP and MPP of labour intersect

MPP of labour is zero

Efficiency of labour is not affected by

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attitude of worker

attitude of employer

attitude of wife/husband

all affect

Wit rapid economic growth in a country the individual demand curve will:

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Rise

Fall

Extend

Contract

If supply rises more than demand, price of the product will.

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Fall

Rise

Not change

Change

during short period, diminishing returns may follow because

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quantity of labour is fixed

quality of labour is fixed

quantity of capital is fixed

quantity of any one factor is fixed

All the following are U-shape except

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AVC

AFC

AC

MC

What best explains a shift in market supply curve to the right?

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an advertising campaign is successful in promoting the good

a new technique makes it cheaper to produce the good

the government introduces a tax on the good

the price of raw materials increases

Scarcity of goods means

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non availability of goods

high price of goods

People don't want to get such goods

the good is available but it is not free

A firm attains sub-normal profit under perfect competition when its:

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AR = P (Price)

AR < P

AC = P

AC < P

One of the following is not land.

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Sui gas

Electric power

Atlantic Ocean`

A river

Initial utility of a product is :

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Highest

Lowest

Conatant

None of them

When demand is perfectly elastic, an increase in supply will result in

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decrease in quantity sold

increase in quantity sold

fall in price

b and c above

One of the following is fixed capital.

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Raw material

Defence saving certificate

Machinery

None f the three

If we know that quantities bought and sold are equal, we can conclude that

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quantities demanded and supplied are also equal

the market is in equilibrium

there will be no tendency for a price change

all of the above

A bridge will be a

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Private good

Capital goods

Consumer good

Personal good

One of the following will not be capital.

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Mchinery

Means of communication

Water falls

Means of transportation

Under perfect competition MR and AR curves

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are the same

are different

intersect each other

are parallel

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)

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