Question # 1

In the market period supply is:

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Variable

Fixed

Zero

Positive

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

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Fall in supply

Contraction in supply

Expansion in supply

Rise in supply

MC cuts AC at:

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Maximum point

Minimum point

Increasing point

Decreasing point

If supply curve is horizontal (parallel to x-axis) then elasticity of supply is

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Zero

Infinite

Equal to unity

More than unity

If supply does not change, then due to fall of demand

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Equilibrium price decreases

Equilibrium price increases

Equilibrium price does not change

Equilibrium quantity increases

Cause of positive slope of supply curve

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Change in cost of production

Fear of increase in cost of production and decrease in profit

Change in technique of production

Increase in per unit profit due to increase in price

"General theory of employment, interest and money" was written in:

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1930

1936

1932

1890

The innovation theory of trade cycles was presented by

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Hayek

Hawtray

Schumpeter

Pigou

Theory of innovations was presented by:

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Joseph Schumpeter

Habson Foster

Jevons

J.R Hicks

In which direction demand and supply curves move

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Same

Opposite

parallel

Horizontal

When marginal utility is zero, then total utility is

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Minimum

Positive

Maximum

Zero

Long run average cost curve is:

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Planning curve

Envelope curve

Flatter curve

All of three

Prices during the situation of inflation

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Increase

Decrease

Do not change

Become zero

Who said that economics is the science of material welfare ?

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Adam smith

Marshall

Ricardo

Robbins

Comparative cost theory was presented by

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Marshall

Ricardo

Hecksher

Ohlin

Equilibrium of national income is, when

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S > 1

S = 1

S < 1

S and 1

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