Question # 1

Id demand changes by less than 10% due to 10% change in price, then elasticity of demand is called

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Equal to unity

More than unity

Less than unity

Infinite

Which is subtracted from gross national product to find gross domestic product

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Depreciation allowance

Net income received from foreign sources

Indirect taxes

Transfer payments

During boom, a government prepares budget which is

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Balanced

Surplus

Deficit

Unbalanced

In which phase of a trade cycle level of employment and income become very low

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Depression

Recovery

Boom

Recession

Law of constant return is also known as:

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Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

Economic problem arises due to:

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Unlimited wants

Limited resources

Resources have alternative use

All of them

Unit of account money in Pakistan is

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Rial

Rupee

Dollar

Pound

Next best alternative use of resources is known as:

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Implicit cost

Explicit cost

Opportunity cost

Sunk cost

The subject matter of Macro Economics is

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Consumer's behavior

International trade

Firm's behavior

Price mechanism

Under monopoly, the slope of MR curve is:

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Twice the slope of AR curve

Less than the slope of AR curve

Greater than the slope of AR curve

Half the slope of AR curve

Which one of the following stated the canons of taxation first

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Adam Smith

Marshall

Robbins

Keynes

One of the following is not the difficulty of the barter system

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Indivisibility of goods

Lack of common measure of value

Double coincidence of wants

Lack of store of value

Micro economics studies related to:

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National income

Unemployment

Trade cycle

Consumers behaviour

How many are kinds of economics

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Two

Three

Four

Five

If supply curve is vertical (parallel to y-axis), then elasticity of supply is

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Zero

Infinite

Equal to unity

More than unity

By increasing the cost of production, the supply

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Extends

contracts

Falls

Rises

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Principles of Economics Icom Part 1 English Medium Online Test MCQs With Answers

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