Question # 1

If supply of a commodity changes by more than 10% due to 10% change in its price, then elasticity of supply will be

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Equal to unity

More than unity

Less than unity

Infinite

"A trade cycle is completed in three years four months" This is stated by

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Prof Kitchen

Prof Jugglar

Prof Jevons

Prof Pigou

Cheque, bill of exchange etc are

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Metallic money

Paper money

Credit money

Near money

Disposable personal income is equal to

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Personal income + direct taxes

Personal income + indirect taxes

Personal income + direct and indirect taxes

Personal income - direct taxes

The goods which are jointly demanded are called:

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Substitute goods

Complimentary goods

Alternative goods

None of these

When a firm's average total cost is equal to price, then it is called as

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Normal profit

Abnormal profit

Normal loss

Abnormal loss

Founder of classical school of thought was

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Adam smith

Marshall

Robbins

Keynes

The equilibrium of the market is that demand and supply to each other are

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opposite

positive

equal

negative

Total utility increases when marginal utility is

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Positive

Negative

Zero

Minimum

Price and demand has a relationship:

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Negative

Positive

Functional

Both a & c

Quantity theory of money was introduced by:

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Fisher

Marshall

Crowther

J.S Mill

Under monopoly the slopes of AR and MR are:

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Zero

Positive

Negative

None of three

Private individuals can get loan from

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Their relatives, friends and domestic financial institutions

Foreign financial agencies

Foreign government

International financial institutions

If quantity demand changes due to the change in income, it is called:

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Point Elasticity of demand

Arc Elasticity of demand

Income Elasticity of demand

Price Elasticity of demand

Over investment theory is presented by

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Pigou

Hawtray

Hayek, Mises and Cassel

Prof Jugglar

If supply does not change, then due to rise of demand

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity decreases

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