Question # 1

Scarcity means

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non availability of goods

high price of goods

less supply than demand

high profit of the firms

The following affect rent EXCEPT

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better location

fertility of land

cleverness of landlords

scarcity of land

the term marginal in economics means

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unimportant

additional

the minimum unit

just barely passing

Which is true

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capital depreciates

capital is primary factor of production

capital in not hireable

human capital is real capital

This is an assumption of law of demand

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price of the commodity does not change

quantity should not change

supply should not change

income of consumer should not change

Long rum is a period

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three years or longer

long enough to allow firms to change plant size and capacity

in which a firm need not get loans

which affects larger more than smaller firms

With a fall in price quantity demand changes in such a way that total expenditure of the consumer remain constant, elasticity of demand will be.

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Equal to unity

Greater than unity

Less than unity

Equal to zero

If a firm increases the ratio of capital to labour, it becomes more

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labour intensive

capital intensive

output intensive

input intensive

Products A and B are substitutes whereas A and C are complement. With a rise in the price of product A, quantity demand of:

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Product B will go up

Product will fall

Both the above will take place

Nothing will take place

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

Economic principle are also called

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economic law

economic theory

economic model

all of the above

Ceteris paribus means

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other things equal

all variable are independent

all relationships are inverse

that no other assumptions are made

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

Which of the following is capital

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toy of a child

plough of the farmer

calculator of the student

novel book in the library

A firm decides to exit the industry when

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AC starts rising

MC starts rising

price is less than LAC

TC starts rising

The supply price of land is considered to be zero because .`

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Its supply is limited

Its supply is infinity

In aggregate sense its cost of production s zero

Its demand is limited

If a farmer moves from village to a town and establishes a small factory, it is a kind of mobility

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geographical

occupational

social

all of the above

A firm should shut down in the short run if it is not covering its

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variable cost

fixed cost

total cost

explicit cost

Who present the Arc Elasticity formula for the measurement of elasticity of demand.

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R.G.D Allen

Pareto

J.R. Hicks

Robbins

Who introduced the concept of Quasi rent.

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Hicks

Alfred Marshall

Hobson

Robbins

Excise tax is a part of

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fixed cost

variable cost

implicit cost

in not a part of cost

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