Question # 1

If currency can converted into gold, it is called:

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Convertible paper money

Inconvertible paper money

Bank Money

Both a and b

If the total expenditure of the consumer increases due to increase 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

Who did write the book named "An enquiry into the nature and causes of the wealth of nations"

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Adam smith

Marshall

Robbins

Canon

One of the following is not the monetary measure to control inflation

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Increase in bank rate

Open market operation

Increase in the ratio of reserve capital of the banks

Increase in taxes

If the face value of a coin is greater than the value of metal used in:

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Legal money

Token money

Standard money

Both b and c

If demand rises more proportionately than that of supply, then

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Equilibrium price increases

Equilibrium price decreases

Equilibrium price does not change

Equilibrium quantity decreases

Methods of deriving economic laws are

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Two

Three

Four

Five

Firms equilibrium is at that point where

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MC=AR

MC=MR

MC=AVC

MC=AC

Income received without any economic services:

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National Income

Transfer payments

Interest

Profit

Who said that economics is normative science ?

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Keynes

Robbins

Marshall

Rocher

"Public finance is that branch of economics which studies the revenue and expenditures of governments institutions, their inter-relationship and financial administration"
This definition is stated by

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Bastable

Armitage Smith

Marshall

Pigou

Relationship between price and quantity demanded is called

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Demand schedule

Demand curve

Law of demand

Assumptions of law of demand

When average cost increases, marginal cost is - - - - - - average cost

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Less than

More than

Equal to

None of three

According to quantity theory of money, if quantity of money is doubled then prices are doubled while value of money is

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Doubled

One halved

Less than one halved

Not influenced

When production of a firm increases then total variable costs

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Decrease

Increase

Remain constant

Do not change

One of the following is not the method to control deflation

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Decrease in public expenditures

Decrease in interest rate

Decrease in income tax

increase in exports

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

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