Question # 1

When price elasticity of demand for normal goods in calculated, the value is always

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positive

negative

constant

greater than one

These are kinds of rent EXCEPT

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differential rent

scarcity rent

mobility rent

location rent

If the price of a product increase from Rs. 12 per unit and as a consequence quantity demand of the product falls from 100 units to 50 units . The price elasticity of the product will be.

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2.5

0.5

1.5

3.5

All factors of production are substitutable with each other. it is held by:

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Wicksteed

Hicks

Pareto

According to law of diminishing marginal utilities , a consumer maximises his total utility where.

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MU_a = MP_a

MU_a = AU_a

MU_a = TC_a

MU_a = P_a

For production of goods we need factors

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few

2

4

unlimited

The basic goal of a firm is to

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maximize revenues

maximize employees' welfare

maximize profit

maximize output

When total product falls, marginal product is.

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Zero

Positive

Negative

Falling

Validity of economics theories can never be proved with 100 percent certainty, because

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ceteris paribus clause

limited number of observation is possible

very large number of economic theories proved false in the past

b and c

The elasticity of demand for a product is less than unity. Therefore, with a fall in its price, total expenditure of consumer will.

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Fall

Rise

Remain the same

Fluctuate

Every factor of production gets reward equal to its

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cost

marginal product

price

increasing return

A positive statement

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concerns what is

is always accurate

deals with values and opinions

cannot be tested in the real world

The law of variable proportions was presented by.

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David Ricords

Alfred Marshall

W.J.L. Ryan

Pareto

Buyers and sellers under perfect competition are.

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The same in number

Large in number

Small in number

None of the above

Law of substitution is another name for

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law of diminishing MU

law of equi-MU

law of demand

law of satisfaction

MRP curve of a factor represents the.

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Supply curve of the factor

Demand curve of the factor

Either demand or supply curve of the factor

None of the three

As output increase, one of the following costs will also increase:

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Marginal cost

Average cost

Variable cost

Fixed cost

Economics laws

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must be followed

are hated by people

show economic behavior of people

are unscientific

If marginal product of labour rises because of new technology

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wages will rise

wages will fall

wages will be unaffected

may raise or fall

Total profit = ?

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Per unit profit x output

Per unit profit x input

Per unit profit + output

per unit profit - input

To the economist, investment refers to

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sale of real estate

creation of new capital

purchase of a prize bond

decrease in inventories

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