Question # 1

A firm earns normal profit

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When price of the commodity is equal to average cost

When price of the commodity is more than average cost

When price of the commodity is less than average cost

When total revenue is more than total costs

Production of an additional unit of factor refers to:

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AP

TP

MP

MR

If the ratio of change in demand is equal to the ratio of change in price, elasticity of demand will be

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More than unity

Less than unity

Equal to unity

Infinite

Initial utility of a product is:

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Highest

Lowest

Constant

All of these

Blessings like air, rain existing on land are included in factor of production

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Labour or human resources

Capital or monetary resources

Land or natural resources

Organisation

In private finance the individuals estimate their income and expenditures

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Daily

Weekly

Monthly

Yearly

All the factors production can be hired except.

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Land

Labour

Capital

Organization

Applied on agriculture immediately

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Law of increasing return

Law of substitution

Law of decreasing return

Law of decreasing cost

Economic problem arises because human wants

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Are unlimited

Are limited

Do not exists

None of three

In modern term, factors of production are called

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Inputs

Productive services

Inputs and productive services

Production of goods and services

The average duration of trade cycle is:

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Five years

Fifty years

Twenty years

Ten years

What is the reward of Labour ?

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Rent

Wage

Interest

Profit

If income of government is more than its expenditures, then it is a

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Surplus budget

Deficit budget

Development budget

Balanced budget

When average product increase, marginal product

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Decreases

Is zero

Is negative

Also increases

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

The money whose face value is greater than its intrinsic value, is called

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Standard metallic money

Paper money

Token money

Near money

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