Question # 1

When demand for a commodity changes due to the change in price of some other commodity, it is called

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Point elasticity

Arc elasticity

income elasticity

cross elasticity

Average cost curve is in short run

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Negative sloped

U-shaped

L-shaped

Positive sloped

Rent of the building, interest of the capital and salaries of the permanent staff etc are called

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Fixed costs

Variable

Marginal cost

Average cost

In between how many countries international trade takes place under comparative cost theory

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Two

Three

Four

Many

The power of a good or service to satisfy a human want is called:

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Value

Price

Utility

All of them

Founder of neo-classical school of thought:

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Adam Smith

Marshall

Robbins

Keynes

According to law of diminishing marginal utility, Utility of every new (Additional) unit of commodity

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Increases

Decreases

Remains constant

None of these

According to law of demand, when price of a commodity decreases, then demand curve

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Moves from left to right upward

Moves from left to right downward

Moves vertically

Moves horizontally

"A trade cycle is fluctuation in employment, production and prices" This definition of Trade cycle is stated by

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Prof Keynes

Prof Mitchall

Prof Hanson

Prof Haberler

Wages of temporary labourers are:

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Fixed cost

Marginal cost

Total cost

Variable cost

Under decreasing return, the slope of marginal product curve is

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Negative

Positive

Infinite

Zero

What is the reward of Organization ?

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Rent

Wage

Interest

Profit

When total utility is increasing marginal utility is

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Zero

Positive

Negative

Maximum

Movement on the same demand curve is called:

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Increase is demand

Rise and fall in demand

Decrease in demand

Expansions and contraction in demand

Under consumption or over saving theory is presented by

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Prof Hobson, Foster and Catchings

Prof Hawtrey

Prof Keynes

Prof Jevons

When price of a commodity decreases but its demand does not change, this situation is called

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Constant demand

Fall of demand

Rise of demand

Extension of demand

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

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