Question # 1

With an increase in cost of production, price of the product rises while supply of the product will.

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Fall

Rise

Remain unchanged

Non of the three

The price of a product double due to which its quantity demand falls to one half. The elasticity of demand for product will be:

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Equal to unity

Lass than unity

Greater than unity

Equal to zero

Compare with monopoly price, the competitive price ids always:

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Less than monopoly price

More than monopoly pruce

Equal to monopoly price

Non of the three

When MR = MC , a firm.

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Does not attain a equilibrium position

Suffers from loss

Attains its equilibrium position

Attains profit

Diminishing marginal utility is the basis of

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law of supply

law of demand

laws of returns

none of the above

The government constructed a new water reservoir for the purpose of irrigation; this might be taken as

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increase in supply of capital

increase in supply of land

increase in supply of land and supply of capital

increase in natural resources

Economics of scale are of two kinds

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temporary and permanent

internal and external

managerial and industrial

natural and artificial

The utility of an additional unit of a product is

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Law of demand

Law of substitution

Law of supply

Law of diminishing marginal utility

When business expands beyond its optimum level what type of economics will it be getting.

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Diseconomies

Internal economies

External economies

Maanagerial economics

Wants are unlimited for:

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Poor person

Rich person

All persons

None of them

Labour input includes

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inventor

innovator

unskilled worker

all of the above

An example of natural resource is

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factory

skilled doctor

oil reserves in the ground

oil reserves in storage tank

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

The human effort applied to the production of goods is called in economics

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labour

skill

experience

services

Which of the following is NOT capital as economists use the term

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an office building

machinery in a factory

an industrial robot

money

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

A market competition from in which there are very large number of firms producing a homogeneous commodity are called

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Perfect competition

Equilibrium of firm

Under perfect competition

None of these

Different kinds of imperfect competition are.

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Monopoly

Monopolistic competition

Oligopoly

All the three

A firm maximizes profit of

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MRP = wage rate

MRP = ARP

MRP is rising

TRP = wages

Long period supply curve is

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relatively flatter

relatively steeper

more elastic

a and c of above

Profit is maximum when

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distance between TR and TC is maximum

distance between AR and AC is maximum

distance between MR and MC is maximum

distance between MR and AR is maximum

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