Question # 1

One of the following is not included in the public expenditures

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Courts

Fee

Public administration

Defence

If price decreases but supply remains constant, it is called:

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Fall in supply

Contraction in supply

Expansion in supply

Rise in supply

Factors of production are more mobile

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In international trade

In the country

In both

In none

According to law of supply, supply curve moves from left to right upward, this tendency is called

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Positive

Negative

Horizontal

Vertical

The sector of production, in which nature plays more role, there is applicable

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Law of increasing return

Law of constant return

Law of decreasing return

Law of decreasing cost

Economics according to its scope is

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Science

Art

Science & Art

Only positive science

The amount of money which a firm gets by selling a particular quantity of output, is called

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Average revenue

Marginal revenue

Total revenue

Fixed cost

If the demand for commodity being produced increases, then a firm in the short run ------- its variable factors

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Increases

Decreases

Keeps the same

None of three

Relationship between price and quantity demanded is called

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Demand schedule

Demand curve

Law of demand

Assumptions of law of demand

According to quantity theory of money doubling the quantity of money, prices

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Increase

Double

Decrease

One half

In mathematics, symbol for utility is used

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U

M

X

Y

Exchange of goods with goods is called

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Medium of exchange

Store of exchange

Scale of measure of exchange

Barter system

A textile mill produces 2000 meters cloth. Entrepreneur offers 1500 meters cloth to sell at price Rs 100 per meter and 500 meters cloth keeps with him. Cloth kept by the entrepreneur is called

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Total production

Supply

Stock

Surplus production

If demand decreases by 15% due to 10% increase in Price, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

In between how many countries international trade takes place under comparative cost theory

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Two

Three

Four

Many

Economy gets prosperity during

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Recession

Depression

Boom

Recovery

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

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