Question # 1

Supply curve shifts due to better technique of production

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Rightward

Leftward

Does not change

Vertical

Dividing total costs by the units of output is attained

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Average fixed cost

Average cost

Average variable cost

Marginal cost

If demand changes by more 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

Marginal utility curve moves

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From left to right downward

From left to right upward

Parallel to ox axis

Parallel to oy axis

The goods on which law of demand does not apply, are called

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Services

Goods and services

Giffin goods

Capital goods

During recession demand for factors of production is

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More

Limited

Very low

Too much

Transfer payment means that income

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Which can move from one place to order place i.g. money etc.

Which is received without labour, e.g. Zakat, gift , pension etc

Which is received after hardwork

Which is received by exports

If total expenditure of the consumer decreases due to increase in price, then nature of elasticity of demand will be

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Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

According to law of diminishing marginal utility, marginal utility of a commodity

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Increases

Decreases

Remains constant

Become negative

Supply of goods depends upon

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Price

Income

Price and income

Utility

Methods of deriving economic laws are

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Two

Three

Four

Five

In economics, every mental or physical struggle undertaken for reward, is called

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Land

Labour

Capital

Organization

Supply curve of perishable goods is:

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Horizontal

Vertical

Infinite

All of them

Formula method to measure elasticity of supply is related to

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Marshall

Robbins

R.G.D Allen

Flux

By increasing the cost of production, the supply

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Extends

contracts

Falls

Rises

The unit of money by which the value of goods and services is expressed is called

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Paper money

Money of account

Legal tender money

Near money

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

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