| 1 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
|
| 2 |
The minimum wage is an example of |
- A. price floor
- B. price ceiling
- C. equilibrium wage
- D. efficiency of labour
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| 3 |
Who was the founder of classical school of thought? |
- A. Adam Smith
- B. Marshall
- C. Keynes
- D. Maithus
|
| 4 |
Which laws are always subjected to certain conditions. |
- A. Social
- B. Political
- C. Moral
- D. Economic
|
| 5 |
A monopoly firm is in equilibrium when |
- A. MC intersects AC
- B. MC intersect MR
- C. AC intersects AR
- D. TC intersects TR
|
| 6 |
Stock exchange is market where we can buy: |
- A. Shares
- B. Foreign exchange
- C. Factors of production
- D. Consumer goods
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| 7 |
If demand is unitary elastic, a 25% increase in price will result in |
- A. 25% change in total revenue
- B. no change in quantity demanded
- C. 1% decrease in quantity demanded
- D. 25% decrease in quantity demanded
|
| 8 |
Profits arise |
- A. only in monopoly
- B. because of uncertainty
- C. shortage of goods
- D. like interest
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| 9 |
Scarcity means |
- A. non availability of goods
- B. high price of goods
- C. less supply than demand
- D. high profit of the firms
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| 10 |
A firms reaches its shut down point where: |
- A. AC > AR
- B. AC = AR
- C. AC< AR
- D. AVC = AR
|