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Online Tests
Principles of Economics Icom Part 1 English Medium Online Test MCQs With Answers
Question # 1
When average cost increases, marginal cost is - - - - - - average cost
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Less than
More than
Equal to
None of three
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Question # 2
Are included in welfare economist
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Ricardo and J.S. Mill
Robbins and Keynes
Cannon and Pigou
Malthus and Keynes
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Question # 3
Law of decreasing return is immediately applied on
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Agriculture
Trade
Industry
Construction
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Question # 4
If total expenditure of the consumer increases due to decrease in price, then nature of elasticity of demand will be
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Equal to unity
Less than unity
More than unity
Elasticity of demand = zero
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Question # 5
Fixed cost consists of:
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Rent
Salaries
Interest
All of them
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Question # 6
If demand for a commodity changes due to change in price of its substitute, it is called
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Price elasticity
Point elasticity
Cross elasticity
Arc elasticity
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Question # 7
When no satisfaction is attained by the consumption of a commodity, its marginal utility is
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Zero
Positive
Negative
Minimum
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Question # 8
Quantity of a commodity which is offered for sale in a market is called:
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Trade
Supply
Demand
Stock
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Question # 9
In production process, when units of variable factors along with fixed factor of production are increased, marginal product goes on failing, this tendency in economics is called
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Law of decreasing return
Law of increasing return
Law of production
Law of constant return
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Question # 10
If price decreases but supply remains constant, it is called:
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Fall in supply
Contraction in supply
Expansion in supply
Rise in supply
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Question # 11
Firms earn abnormal profit when:
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AR = AC
AR < AC
AR > AC
AC = AR
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Question # 12
With an increase in the price of any good its substitutes will have
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a fall in its price
an increase in its prices
an increase in its demand
a decrease in its price
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Question # 13
If there is big change in Price and demand, it is called
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Arc elasticity
Point elasticity
Income elasticity
Cross elasticity
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Question # 14
If variable costs of a firm are covered partly under perfect competition, then that firm
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Will run with normal profit
Will run with abnormal profit
Will run with minimum loss
Will not continue its business and close down
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Question # 15
In the short period, fixed cost curve has the tendency
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Parallel to ox-axis
Parallel to oy-axis
Positive
Negative
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Question # 16
Which law provides the base of law of demand
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Law of supply
Law of diminishing marginal utility
Law of equi marginal utility
Law of decreasing return
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