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11th Principle of Economics Chapter 7 Test

Here you can prepare 11th Principle of Economics English Medium Chapter 7 Price and Output Determination Test. Click the button for 100% free full practice test.

First Year Principles of Economics Chapter 7 Online MCQ Test for 1st Year Principles of Economics Chapter 7 (Price and Output Determination)

This online test contains MCQs about following topics:

. Normal profit . Super normal profit . Determination of firm's output under perfect competiton . Equilibrium of the firm under perfect competition in the short run . Equilibrium of the firm undre perfect competition in the long run . Equilibrium of the industry inder perfect competition in the long run . Price and output determination under monopoly

ICOM Part 1 Economics Ch 7 Test
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First Year Principles of Economics Chapter 7 Online MCQ Test for 1st Year Principles of Economics Chapter 7 (Price and Output Determination)

Sr. # Questions Answers Choice
1 What can a firm do in the short run
  • A. Firm can increase its plants
  • B. Firm can expand its building
  • C. New firm can not enter the business
  • D. New firm can enter the business
2 According to neo classical approach, output is the function of:
  • A. Labour
  • B. Capital
  • C. Organization
  • D. Both (a) and (b)
3 When total revenue and total cost of a firm are equal, the firm earns
  • A. Abnormal profit
  • B. Normal profit
  • C. Normal loss
  • D. Abnormal loss
4 Tendency of average revenue curve under monopoly is alwaus
  • A. Falls down
  • B. Parallel to x-axis
  • C. Rises up
  • D. Parallel to y-axis
5 Usually elasticity of demand in equilibrium situation under monopoly is
  • A. Equal than unity
  • B. Less than unity
  • C. more than unity
  • D. Zero
6 If a monopolist wants to increase the sale of its product, it will have to --------- the price of its good
  • A. Decrease
  • B. Increase
  • C. Keep constant
  • D. None of the three
7 When a firm earns abnormal profit in the short run, then its
  • A. MC=MR=AR=AC all are equal
  • B. MC=MR=AR while AC is less
  • C. MC=MR=AR while AC is more
  • D. MC=MR=AR while AV is sometimes equal to them and sometimes less than tham
8 One condition which is not included in perfect competition conditions
  • A. Homogeneity of product
  • B. Difference in price
  • C. Large number of buyers and sellers
  • D. Perfect knowledge of the market
9 The formula of calculating total revenue is
  • A. P x Q
  • B. P x AC
  • C. AC x Q
  • D. TC / Q
10 Shut down point appears, when
  • A. AVC=AR
  • B. AVC>AR
  • C. AVC<AR
  • D. AC=AR

Top Scorers of Principles of Economics Icom Part 1 English Medium Chapter 7 Online Test

B

Bilal Zafar

Lahore07 - Jun - 2024

14/15
04 Mins 38 Sec
S

Sania Butt

Lahore03 - Jun - 2024

12/15
06 Mins 03 Sec

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