Question # 1

AR curve is also called:

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Supply curve

Demand curve

Utility curve

Cost curve

Which factor has no pre-determined reward

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Land

Labour

Capital

Organization

Fixed cost consists of:

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Rent

Salaries

Interest

All of them

During the phase of recession prices of goods

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Start rising

Start falling

are highest

are lowest

"Money is a thing by which payments of agreements of borrowing and pricing are made and general purchasing power is stored in it." This definition of money is stated by the economist

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Prof Marshall

Prof Walker

Prof Keynes

Prof Crowther

Psychological theory of trade cycles is presented by

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Prof Jevons

Prof Pigou and Bagehot

Prof Keynes

Prof Hawtrey

The costs which a firm bear only in case of producing commodities

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Fixed costs

Variable costs

Total costs

Average fixed cost

Firm earns maximum profit at the point where

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Difference between total costs and total revenue is highest and the total revenue curve is above

Total costs and total revenue curves intersect each other

Total costs curve is above the total revenue curve

Difference between total costs and total revenue is minimum

In law of increasing cost, marginal cost

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Increases

Decreases

Remains constant

Remains fixed

The average duration of trade cycle is:

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Five years

Fifty years

Twenty years

Ten years

Next best alternative use of resources is known as:

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Implicit cost

Explicit cost

Opportunity cost

Sunk cost

Inconvertible paper money is issued by

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Central bank

Commercial bank

Industrial bank

Central government

Law of decreasing return is also known as:

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Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

When there is big change in demand and price of a commodity, it is called

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Point elasticity

Arc elasticity

Cross elasticity

Income elasticity

If percentage change in supply is less than the percentage change in price, then elasticity of supply is called

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Equal to unity

Less than unity

More than unity

Zero

The ratio of change in investment to change in income is known as:

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Multiplier

Accelerator

MEC

Both a and b

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