Question # 1

The elasticity of demand of durable goods is

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less than unity

greater than unity

equal to unity

zero

Wealth of nations

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is another name for united nations

is name of a book

indicates total wealth of rich countries

contains formulas to earn wealth

Which of the following is the subject matter of Economics.

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Optimum use of limited resources for the satisfaction of unlimited human wants.

Economic problems of the developing countries.

Labour problems.

Balance of payment problems.

During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to

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rightward

leftward

downward

no direction

Equilibrium

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is a state that can never be achieved in economics

is an important idea for predicting economics changes

is a stable condition

is an unstable condition

Income elasticity of demand for normal good is always

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1

more than one

negative

positive

Production in economic means

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factors of production

doing some job

output of goods

profit

The necessary condition for equilibrium position of a firm is

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MC > MR

MC > price

MC = MR

MC = AC

The composite demand for a product is generally:

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Elastic

Inelastic

Equal to unity

Equal to zero

Elasticity of a demand for product will be greater then unity if, with a fall in its price, total expenditure of consumer.

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Increase

Falls

Remains the same

None of the three

All labour is

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homogeneous

heterogeneous

lazy

intelligent

Lowest point on the average cost curve in the long-run represents;

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Optimum factors combination

Maximum level of output

Maximum level of total revenue

None of the three

One of the following is not assumption of the marginal productivity theory.

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All factors of production are present substitutes of each other.

Law of increasing return applies in the production process.

There is perfect mobility of factor of production

Units of each factors of production are identical

Quasi rent is a:

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Short-run phenomenon

Long-run phenomenon

Short and long run phenoomenon

None of the three

Adam Smith wrote a book entitled "An enquiry into the nature and causes of wealth of nation" in.

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1784

1792

1776

1796

Fixing of minimum wage

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raises demand for labour

raises profits

causes unemployment

is welcomed by employers

Average cost and marginal cost curves in the short-run are:

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Quadratic function

Linear function

Cubic function

Log function

Irrespecitve of price, Somia always spends Rs. 100 a week on ice cream, we conculde that

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elasticity of demand is 0

elasticity of demand is 1

elasticity of demand id infinite

law of demand has been violated

Wit rapid economic growth in a country the individual demand curve will:

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Rise

Fall

Extend

Contract

In May 2012, firm was supplying 1000 kg of sugar at market price of Rs. 60/- per kg. During June 2012, firm's supply of sugar had decreased to 900 kg at price Rs. 40/- per kg. These changes show that supply of sugar is

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Perfectly elastic

Perfectly inelastic

Less elastic

More elastic

Other things equal, if a good has more substitutes, its price elasticty of demand is

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larger

smaller

zero

unity

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