Question # 1

The law demand will not be valid in case of.

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Very high price products

Normal goods

Price effect

Income effects

Specialization of labour has the advantage.

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increased production

introduction of new technology

increases in self-sufficiency

a and b of above

If a firm shuts down temporarily, it will incur loss equal to

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AFC

AVC

TFC

TVC

When average product falls marginal product

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Rises

Also falls

Remain equal to average product

Does not change

Economies of scale

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occur when increase in input less than proportionate increase in output

suggest that firm's marginal cost curve lies above its average cost curve

suggest that the firm's marginal cost curve is declining

occur when average cost is falling

When the percentage change in quantity demanded is greater than the percentage change in price, elasticity of demand for the product will be.

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Equal to unity

Less than unity

Greater than unity

Equal to zero

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

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

Marginal revenue products (MRP) curve falls when units of labour

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Remain constant

Decrease

Increase

None of the three

Equilibrium price of a product is determined by:

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The gomverment

An industrialist

Market competition

An agriculturist

According to Keynes interest is a payment for

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use of durable goods

use of capital

use of money

use of land

Marginal land

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is uncultivable land

gets low rent

gets no rent

cannot be sold

In case of perfectly elastic demand curve, the demand curve will be parallel to the :

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Horizontal axis

Vertical Axis

None of the above

Why should employ units of a factor to a point where

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MP is negative

MP is equal to price of the factor

MP is positive

MP is rising

Doctors get higher wages than clerks because

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doctors are in short supply

doctors have more respect in society

doctors are organised in trade unions

people fear doctor's displeasure

The long run average cost curve is tangent to various

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short run TCs

short run ACs

AVCs

AFCs

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

In the second stage of the law of variable of proportions the average product:

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Rises

Remains constant

Falls

None of the three

The necessary condition for equilibrium of firm is

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AVC = AFC

AR = MR

MC = MR

TVC = TFC

Robbins definition of economics spell out the existence of

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Economics problem

Social problem

Political problem

Moral problem

A labourer resigns from service to start his own business. what type of mobility will it be.

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Vertical mobilty

Occupational mobility

Horizontal mobility

Social mobility

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