| 1 |
The method to measure the elasticity of demand by the unitary method was introduced by. |
- A. Alfred Marshall
- B. Robbins
- C. Adam Smith
- D. Malthus
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| 2 |
A fall fall in supply will take place due to a: |
- A. Business collusion
- B. Bumper crop
- C. Fall in custom duty
- D. Fall in income
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| 3 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
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| 4 |
Demand and supply forces determine market price |
- A. only in perfect competition
- B. only in monopoly market
- C. in both markets
- D. none of the above
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| 5 |
If price is set above equilibrium level, there will be |
- A. surplus commodity in the market
- B. shortage of commodity in the market
- C. supply curve will shift
- D. demand curve will shift
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| 6 |
The proportion of rural population in Pakistan is: |
- A. 68%
- B. 70%
- C. 72%
- D. 74%
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| 7 |
A rise in supply and demand in equal proportion will result in |
- A. increase in equilibrium price and decrease in equilibrium quantity
- B. decreases in equilibrium price and increases in equilibrium quantity
- C. no change in equilibrium price and increases in equilibrium quantity
- D. increases in equilibrium price and no change in equilibrium quantity
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| 8 |
The supply of perishable goods is. |
- A. Elastic
- B. Inelastic
- C. Perfectly elastic
- D. None of the above
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| 9 |
Normal profit is |
- A. part of total cost
- B. part of economic profit
- C. part of fixed cost
- D. total revenue minus total cost
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| 10 |
Economic problems arises because of. |
- A. Unlimited wants.
- B. Scarcity of resources.
- C. Alternative use of resources.
- D. All of the above
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