Question # 1

If supply goes on increasing due to a slight increase in price, then elasticity of supply is called

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Zero

Infinite

Equal to unity

More than unity

Measurement of arc elasticity of demand was present:

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Keynes

Marshall

Adam smith

R.G.D Allen

The difference between total revenue (TR) and total cost (TC) is called

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Loss

Profit

Profit or loss

Utility

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

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Land

Labour

Capital

Organization

Cause of shifting of demand curve is

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Change in price

Desire

Other factors

Exceptions

Which factor can not be stored

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Land

Labour

Capital

Organization

The name of first law of consumption is

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Law of demand

Law of diminishing marginal utility

Law of equi marginal utility

Law of supply

Because of increase in national income

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Standard of living rises

Standard of living falls

No change occurs

None of three

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

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Infinite

Zero

Equal to unity

More than unity

International trade is based on the following except

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Different factors of production are required for the production of different goods

Factors of production exist in different ratios in different countries

Factors of production are in abundant quantity in different countries

Factors of production are in limited quantity in different countries

The duty of a market is not to

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make exchange of goods

contact buyers and sellers

determine price

give maximum output

When average product is maximum, marginal product is:

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Positive

Equal to AP

Zero

Negative

If demand for a commodity changes due to change in price of its substitute, it is called

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Price elasticity

Point elasticity

Cross elasticity

Arc elasticity

Saving deposits and time deposits of the banks, Govt. securities and shares of the companies are called

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Token money

Money of account

Standard money

Near money

If 30% change in supply in response to 50% change in price then:

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Es = 0

Es = 1

Es > 1

Es < 1

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

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

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