Question # 1

National income increases by

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The increase in the quantity of capital goods

The increase in the quantity of goods and services

The increase in price of goods

The increase in the income of entrepreneurs

If the rate of change in price and quantity demand is in equal ratio, then Elasticity of demand is:

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Equal to zero

Equal to one

Smaller than one

Greater than one

" International balance of payment is all that transaction for which either foreign exchange is spent or received." This definition is stated by

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Prof. Marshal

Prof.Samuelson

Prof. Ricardo

Prof. Hicks

It was impossible under barter system

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Lack of coincidence of wants

Lack of common measure of value

Divisibility of some goods in small parts

Solution of all the said problems

What functional relationship is present between demand and price

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positive

inverse

increasing

none of these

When total production is maximum, marginal product is:

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Positive

Negative

Zero

Infinite

Consumer's equilibrium takes place at that point where:

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MU is negative

MU is positve

TU is maximum

MU is maximum

If demand curve is parallel to y-axis, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

If we deduct foreign income from GNP, we get:

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N.N.P

G.D.P

D.P.I

P.I

Disadvantages of paper money are

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Unstable value

Possibility of inflation

Possibility of wastage

All the three

First law of consumption is known as:

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Law of supply

Law of demand

Law of diminishing marginal utility

Law of equi marginal utility

Cannot be separated from labourer

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Land

Labour

Capital

Organization

If in a production sector, along with the fixed factor of production, by increasing units of variable factors, marginal product remains constant, this tendency in economics is called

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Law of increasing return

Law of constant return

Law of decreasing return

Law of production

"Principles of Economics" was written by.

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Adam smith

Marshall

Robbins

Canon

Elasticity of demand for the commodities which have substitutes, is

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More elastic

Less elastic

Infinite

Zero

Who said that economics is positive science

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Adam Smith

Marshall

Robbins

Keynes

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