Question # 1

Other things equal, if a good has more substitutes, its price elasticty of demand is

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larger

smaller

zero

unity

The price and sales of sugar both increase. What could be the cause of this?

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a decrease in the income of the consumers.

a decrease in the tax on sugar

An increase in the wages of workers in the sugar industry

An increase in the price of sugar substitutes

Production of wealth takes place by:

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A combination of output

A combination of input

Labour only

Capital only

Initial utility of a product is :

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Highest

Lowest

Conatant

None of them

Economics

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is more important than mathematics

is a social science

should be made compulsory for every student

is difficult to study

MC is given by slope of

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TFC

TC

ATC

AVC

The transformation of resources into economic gods and services is

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input

production

entrepreneur

market

How many functions of capital

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6

5

4

7

In case of a fall in supply.

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Quantity supplied falls at the same price.

Quantity supplied rises at the same price.

Quantity supplied remain at the lower price.

None of the three

Which statement is true

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ATC + AVC = AFC

ATC + MC = AFC

ATC + AFC = AVC

AFC + AVC = ATC

The basic goal of a firm is to

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maximize revenues

maximize employees' welfare

maximize profit

maximize output

If demand is unitary elastic, a 25% increase in price will result in

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25% change in total revenue

no change in quantity demanded

1% decrease in quantity demanded

25% decrease in quantity demanded

The maximum number of parteners in a partnership is .

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20

30

15

18

Marginal product indicates rate of change of

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total product

average product

variable product

all of the above

All inputs can be varied in

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short run

long run

both periods

non of the period

Wealth of Nations was written by

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Adam Smith

Malthus

Marshall

Newton

Under perfect competition MR and AR curves

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are the same

are different

intersect each other

are parallel

The concept of quasi rent was given by.

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Ricardo

Adam smith

Alfred Marshall

Robbins

Profits arise

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only in monopoly

because of uncertainty

shortage of goods

like interest

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

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Rise

Fall

Remain unchanged

Non of the three

It is most suitable for large scale business

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proprietorship

partnership

corporation

cooperative society

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