Question # 1

Industry is in equilibrium under perfect competition in the long run, when every existing firm in the industry

Choose an answer

Is earning abnormal profit

Is earning normal profit

Is facing minimum loss

Is facing abnormal loss

Functions of money are

Choose an answer

Medium of exchange

Common measure of value

Store of value

All the three

If demand did not influence by the charge in price, that is called:

Choose an answer

Elasticity of demand = 1

Elasticity of demand < 1

Elasticity of demand > 1

Elasticity of demand = 0

Expenses of wears and tears of machinery are called

Choose an answer

Productive expenses

Non productive expenses

Wages

Depreciation expenses

Unitary method for Elasticity of demand was presented by:

Choose an answer

Marshall

Keynes

Robbins

Adam smith

With an increase in the price of any good its substitutes will have

Choose an answer

a fall in its price

an increase in its prices

an increase in its demand

a decrease in its price

One of the following is not assumption of law of diminishing marginal utility

Choose an answer

Same nature of the commodity

Consumption of the commodity with intervals

Suitable quantity of the commodity

No change in consumers mental condition

Quantity of a commodity which the consumers are ready to purchase at a particular price, is called

Choose an answer

Demand

Supply

Stock

Demand and supply

Government estimates its income and expenditures

Choose an answer

Monthly

Three monthly

Six monthly

Annual

Founder of modern school of thought:

Choose an answer

Adam smith

Marshall

Ricardo

Robbins

Laws cannot be predicted

Choose an answer

Scientific laws

Moral laws

Economic laws

Natural laws

If supply of a commodity is fixed, it is called

Choose an answer

Market supply

Short period supply

Long period supply

Middle period supply

One of the following is not included in the public expenditures

Choose an answer

Courts

Fee

Public administration

Defence

Under perfect competition:

Choose an answer

AR > MR

AR < MR

AR = MR

All of three

Reserve price of a commodity is that price

Choose an answer

Which is more than the cost of production of the seller

At which the seller sells his commodity tn the market

Which is equal to the cost of production of the seller

Below which the seller is not ready to sell his commodity

Under constant return, the slope of marginal product curve is

Choose an answer

Positive

Negative

Infinite

Zero

More Classes

Other Links

Principles of Economics Icom Part 1 English Medium Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer