Question # 1

Profits

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are lower in the long run than in the short run

can be negative

are less in perfect competition than in monopoly

all of the above

Which of the following is a producer good

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pen

cycle

mobile phone

hammer

Land means nature resources which are available.

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On the soil

Above the soil

Below the soil

All the above

In production of goods, negative returns in the short run imply that

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average product is negative

total product is negative

marginal product is negative

marginal cost is falling

Standard of living of workers depends upon their

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nominal wages

real wages

average product

govt. policy

When average product falls marginal product

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Rises

Also falls

Remain equal to average product

Does not change

The basic economic problem to all societies is

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elimination of scarcity

what how and for whom to produce

equal distribution of wealth

to develop agriculture

:It is not possible to separate marginal revenue product of each factor of production:. It was said by:

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Carver

Hobson

Hansen

Hicks

Consists of all kinds of wealth, other than free gifts of nature, which yield income are called

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Capital

Productivity of capital

Both a and b

None of these

"The reward for a factor is determined by the marginal revenue product of the factor" . it was said by:

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J.M. Keynes

Taussing

Hansen

Carver

He prepares the initial plan of the business

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capitalist

manager

entrepreneur

officer

The rent which is paid in the short run due to perfectly inelastic supply of a factor is known as.

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Deffertial rent

Economic rent

Quasi rent

Scarcity rent

A contour line which slopes downward from left to right and yield equal level of satisfaction to consumer with the given income is.

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Negatively slop curve

An indifference curve

Positively sloped Curve

None of the above

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

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labour

skill

experience

services

Which statement is true

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ATC + AVC = AFC

ATC + MC = AFC

ATC + AFC = AVC

AFC + AVC = ATC

Which of the following is NOT an input

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labour

entrepreneurship

natural resources

production

To say that two goods are unrelated, their cross price elasticity of demand should be

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less than 0

greater than 0

equal to 0

1

Which is a condition for existence of monopoly

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big size

identical product

absence of government taxes

no close substitute

If price changes by one % and supply changes by 2% then supply is

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elastic

inelastic

indeterminate

static

When MU=0, TU is

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minimum

maximum

increasing

decreasing

Ceteris paribus means

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other things equal

all variable are independent

all relationships are inverse

that no other assumptions are made

Marginal utility of a product is the utility obtained by consuming.

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First unit of consummption

Each additional unit of consumption

Last unit of consumption

None of the them

Since marginal land does not yield rent therefore:

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Rent is a part of piece

Rent is not a part of price

Rent determines price

None of the three

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