Question # 1

Profits arise because an entrepreneur

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prepares plan

innovates

lends money

a and b of 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

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

Rent is calculated from

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most superior land

most inferior land

marginal land

uncultivable land

The supply of labour is based on the trade off between leisure and

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wealth

work

wages

price of product

Extent of market mainly depends upon.

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Availability of means of transport and communication

Nature of supply

Government restriction

Perishable goods

Which is a condition for existence of monopoly

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big size

identical product

absence of government taxes

no close substitute

A firm maximizes profit of

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MRP = wage rate

MRP = ARP

MRP is rising

TRP = wages

The wage which is paid in cash is known as.

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Real wage

Nominal wage

Excess wage

Low wage

TC

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starts from origin

not from origin

is parallel to y-axis

parallel to x- axis

Long-run price of a durable good is always less than its short run price . it is because.

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Long -run supply is more elastic than short-run supply curve.

Long -run supply is less elastic than short-run supply curve.

Long and short-run supply curves are equally elastic

None of the three

These are kinds of capital EXCEPT

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fixed capital

expensive capital

working capital

real capital

Market equilibrium means a situation where

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Q_s= Q_d

Q_s= Q_p

Q_d= Q_p

Q_q= Q_p

For an individual farmer, rent paid by him

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is part of cost and affects price of his product

does not enter into price of his product

is unjustified

cannot be determined

It is an example of public limited company

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WAPDA

President House

SHELL petroleum

none of the above

The demand of a commodity having many substitutes is

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more elastic

less elastic

zero elastic

infinite elastic

Equilibrium price of a product is determined by:

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The gomverment

An industrialist

Market competition

An agriculturist

Commercial economics are a pat of:

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Internal economics

External economics

Economies of scale

None of the three

One of the following is gift of a nature .

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Land

Labour

Capital

Organization

When marginal is negative, it must be true that

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the average is negative

the average is decreasing

the total is negative

the total is decreasing

A monopoly firm is in equilibrium when

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MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

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