Question # 1

A firm decides to shut down production temporarily when

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MC start rising

AC stat rising

price = AC

price falls below AVC

The law demand will not be valid in case of.

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Very high price products

Normal goods

Price effect

Income effects

Economics laws are

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exact

approximate

brief

definite

Law of diminishing returns is a universal law as:

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It does apply in all aspects of an economy.

Basically it applies in agriculture.

It is hard to check it.

It applies in industry as well

In economics, one or more persons sharing common consumer budget is called

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social group

consumer union

organisation

household

The most efficient scale of production of a firm is where

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LAC is minimum

SAC is minimum

LMC is minimum

SMC is minimum

Prof. Robins wrote a book in 1931 entitled.

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General Theory of employment. Interest and money.

An inquiry into the nature and causes of wealth of nations.

Principle of economics.

Nature and Significance of economic science.

The three broad types of productive resources are

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money, profit and interest

capital, labour and natural resources

labour, stock shares and deposits

technology, landl and markets

In which form the largest percentage of national income is earned

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interest income

proprietor's income

employees' income

rental income

The method to measure the elasticity of demand is :

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Percentage method

Total outlay approach

Geometric approch

All the three

A horizontal demand curve has a price elasticity of

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zero

infinity

1

variable

Production of wealth takes place by:

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A combination of output

A combination of input

Labour only

Capital only

When MU is positive, TU

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increases

decreases

remains constant

is maximum

Which is NOT an advantage of division of labour

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workers spend less time moving from job to job

workers becomes dependent on other workers

workers become more efficient at performing repeated task

machinery is more easily introduced to perform simple tasks

For production of goods we need factors

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few

2

4

unlimited

If a public limited company issues bonds to increase resources, then it pays

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fixed premium to bond holders

fixed interest to bond holders

fixed tax to bond holders

fixed profit to bond holders

Market equilibrium means

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number of buyers and sellers are equal

demand and supply of commodity are equal

no price is changing

prices rise very slowly

The demand of a will expand when:

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Other things do not remain constant.

Price of the products changes.

Value of money falls.

None of the three

The transformation of resources into economic gods and services is

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input

production

entrepreneur

market

One of the cause of low wage rate in Pakistan is:

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Population explosion

Labour policy

Lack of monility of labour

Lack of natural resources

Long-run supply curve of labour is.

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Negatively stoped

Positively sloped

Parallel to the horizontal axis

Parallel to vertical axis

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