Question # 1

Profits arise because an entrepreneur

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prepares plan

innovates

lends money

a and b of above

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

Normal profit is attained where:

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TR = TC

TR >TC

AR > MR

AR < MR

For production of goods we need factors

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few

2

4

unlimited

Which is NOT a cause of shift in cost curves of a frim

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excise tax

prices of inputs

increase in productivity

price of product

Adam smith was a

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President of France

a modern economist

good sports man

classical economist

Standard of living of a country can be raised if it increases

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labour force

production

money supply

exports

When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product(MP) of labour falls but the average product(AP) of labour rises. This can be explained by the factors that

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MP of labour is grater than AP of labour

additional workers are more efficient

MP and AP are equal

AP is maximum

A bridge will be a

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Private good

Capital goods

Consumer good

Personal good

Marshall wrote the book

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Introduction to economics

Principles of economics

Classical economics

Micro economics theory

y = 2^x is a.

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Log function

Linear equation

Exponential function

Increasing function

In monopoly and perfect competition the cost curves are

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similar

different

opposite

falling in competition rising in monopoly

When MR = MC , a firm.

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Does not attain a equilibrium position

Suffers from loss

Attains its equilibrium position

Attains profit

The set of skills and abilities that workers possess for production of goods and serves is

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motivation

wealth

human capital

natural talent

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

Profit = ?

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TR - TC

TR - MC

TC - MC

TR + TC

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 product which has value price in the market has.

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Utility

Scarcity

Transferability

All the three

A rise in supply and demand in equal proportion will result in

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increase in equilibrium price and decrease in equilibrium quantity

decreases in equilibrium price and increases in equilibrium quantity

no change in equilibrium price and increases in equilibrium quantity

increases in equilibrium price and no change in equilibrium quantity

Unemployment due to mechanization of agriculture is

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seasonal

structural

industrial

personal

Factors of production are recently termed as.

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Output

Outly

Input

None of them

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