Question # 1

Risks in the business arise because of

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introduction of the new products

uncertain policy of rival firms

changes in tastes

all the above

The extent of market depends upon

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Means of transport and communication

Political instability

Economics instability

Trade restriction

Joint stock company is manged and run by a

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Board of Directors

Shareholders

Accountant

None of these

The shape of marginal revenue product (MRP) curve is

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Inverted U

Steeper

Flatter

Positive

If demand has unit price elasticity, a change in price causes

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increase in total revenue

decrease in total revenue

no change in total revenue

indeterminate

The production function relates to

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cost of output

cost of input

output to input

demand to output

The most efficient scale of production of a firm is where

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LAC is minimum

SAC is minimum

LMC is minimum

SMC is minimum

If demand is unitary elastic, a 25% increase in price will result in

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25% change in total revenue

no change in quantity demanded

1% decrease in quantity demanded

25% decrease in quantity demanded

Short run means is a period

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less than one year

in which at least one input is fixed

in which no input can be changed

in which firms can easily enter or exit

With a fall in the price of a Giffen good or inferior good its quantity demand will.

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Fall

Rise

Remain unchanged

None of three

Robbins in his definition

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talks of scarcity of resources

preached moral values

supports Adam smith view

none of the above

Which one of the following is a functional equation of demand:

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Q - 20 + 2P = 0

Q - 3 - 3P = 0

Q + -2P = 0

None of the three

Market demand curve is a summation of all individual demand curves as

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Vertical

horizontal

mathematical

local

y = 20-5 x this function is.

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Increasing function

Decreasing function

Constant function

Exponential function

The concept of differential rent is given by.

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Marshall

David Ricardo

Hobson

Robbins

If supply rises more than demand, price of the product will.

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Fall

Rise

Not change

Change

One of the following is not land.

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Sui gas

Electric power

Atlantic Ocean`

A river

One of the following is not an assumption of law of supply.

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Political system should not changed

Cost of production should not changed

Production technique should not changed

Cost of raw material should not changed

The demand for a factor depends on its.

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MRP

ARP

MRP = ARP

MRP < ARP

normative economics

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deals solely with the facts

is never studied in colleges

involves opinions and interpretations

is clearly preferable to positive economics

______ is a science which is concerned with the collection, presentation, and interpretation of numerical data

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Statistics

Economics analysis

Function

None of these

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