16th Chapter

ICS Part 1 Economics Chapter 16 MCQs Test

First Year Economics Chapter 16 Online MCQ Test for 1st Year Economics Chapter 16 (Pricing of Factors of Production, Wages)

This online test contains MCQs about following topics:

Importance, .Marginal productivity theory, .Modern form of marginl productivity theory, .Factor pricing under impefect competition, .Nominal Vs real wages, .Determination of wages, .Trade unions, .Collective baragaining, .Minimum wage, .Industrial labour in Pakistan, .Trade unions in Paksitan, .Low wags in Pakistan

First Year Economics Chapter 16 Online MCQ Test for 1st Year Economics Chapter 16 (Pricing of Factors of Production, Wages)

Sr. # Questions Answers Choice
1 The supply of labour is based on the trade off between leisure and
  • A. wealth
  • B. work
  • C. wages
  • D. price of product
2 Why should employ units of a factor to a point where
  • A. MP is negative
  • B. MP is equal to price of the factor
  • C. MP is positive
  • D. MP is rising
3 Increasing the minimum wage for workers will
  • A. solve the unemployment problem
  • B. result in scarcity of workers
  • C. cause substitution of capital for labour
  • D. decreases the MP of those workers
4 Doctors get higher wages than clerks because
  • A. doctors are in short supply
  • B. doctors have more respect in society
  • C. doctors are organised in trade unions
  • D. people fear doctor's displeasure
5 Sometimes the supply curve of labour bends
  • A. downward
  • B. upward
  • C. backward
  • D. firstly upward and then downward
6 Minimum wage rate of labour is fixed by :
  • A. Government
  • B. Trade unions
  • C. Entrepreneurs
  • D. Labourers
7 One of the following NOT a assumption of the marginal productivity theory
  • A. units of factor are homogeneous
  • B. mobility of factor
  • C. low price of factor
  • D. perfect competition
8 The supply of land is fixed whereas its Demand is increase day by day, the rent Produced in this way is:
  • A. Differential rent
  • B. Scarcity rent
  • C. Quasi rent
  • D. Economic rent
9 If the rate of inflation goes up, the real wags of labourers will :
  • A. Increase
  • B. Decrease
  • C. Remain the same
  • D. Noe of the three
10 A producer will employ workers up to the point where its MRP becomes
  • A. ARP
  • B. current wage rate
  • C. negative
  • D. equal to profit

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