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Online Tests
Principles of Economics Icom Part 1 English Medium Chapter 7 Online Test MCQs With Answers
Question # 1
Law of constant return is also known as:
Choose an answer
Increasing cost
Constant cost
Diminishing cost
Both (a) and (c)
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Question # 2
Under monopoly, in the long run a firm
Choose an answer
Earns normal profit
Earns abnormal profit
Bears minimum loss
Bears abnormal loss
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Question # 3
What can a firm do in the short run
Choose an answer
Firm can increase its plants
Firm can expand its building
New firm can not enter the business
New firm can enter the business
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Question # 4
If the demand for commodity being produced increases, then a firm in the short run ------- its variable factors
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Increases
Decreases
Keeps the same
None of three
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Question # 5
Laws of returns are also known as:
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Laws of substitution
Laws of consumption
Laws of cost
All of three
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Question # 6
Law of decreasing return is also known as:
Choose an answer
Increasing cost
Constant cost
Diminishing cost
Both (a) and (c)
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Question # 7
When total production decreases, marginal product is:
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Positive
Negative
Zero
Infinite
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Question # 8
Till marginal cost curve remains below the marginal revenue curve, from the economic point of view, increase in production for a firm is
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Beneficial
Unbeneficial
May be beneficial or unbeneficial
Neither beneficial nor unbeneficial
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Question # 9
Usually elasticity of demand in equilibrium situation under monopoly is
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Equal than unity
Less than unity
more than unity
Zero
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Question # 10
Under perfect competition in the long run a firm
Choose an answer
Always earns abnormal profit
Always earns normal profit
Usually earns abnormal profit
Usually faces loss
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Question # 11
Law of diminishing return is more applicable in:
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Trade sector
Industrial sector
Agricultural sector
Education sector
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Question # 12
Industry is in equilibrium under perfect competition in the long run, when every existing firm in the industry
Choose an answer
Is earning abnormal profit
Is earning normal profit
Is facing minimum loss
Is facing abnormal loss
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Question # 13
One condition which is not included in perfect competition conditions
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Homogeneity of product
Difference in price
Large number of buyers and sellers
Perfect knowledge of the market
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Question # 14
The formula of calculating total revenue is
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P x Q
P x AC
AC x Q
TC / Q
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Question # 15
Which law is applicable when human and natural forces are balance ?
Choose an answer
Increasing cost
Constant cost
Diminishing cost
Both (a) and (c)
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Question # 16
If the equation is this, MC=MR-AR(P)=AC, then the firm
Choose an answer
Earns normal profit
Earns abnormal profit
Bears minimum loss
Bears abnormal loss
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