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Online Tests
Principles of Economics Icom Part 1 English Medium Online Test MCQs With Answers
Question # 1
If the ratio of change in demand is equal to the ratio of change in price, elasticity of demand will be
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More than unity
Less than unity
Equal to unity
Infinite
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Question # 2
When a firm earns abnormal profit in the short run, then its
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MC=MR=AR=AC all are equal
MC=MR=AR while AC is less
MC=MR=AR while AC is more
MC=MR=AR while AV is sometimes equal to them and sometimes less than tham
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Question # 3
Dividing total fixed costs by the units of output, is attained
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Average fixed cost
Average variable cost
Average cost
Marginal cost
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Question # 4
All the factors production can be hired except.
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Land
Labour
Capital
Organization
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Question # 5
Which thing of the following should be subtracted from gross national product to get net national product
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Direct taxes
Indirect taxes
Depreciation allowance
Income received from foreign country
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Question # 6
To which area of England Adam Smith belonged
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Wales
Scotland
Ireland
London
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Question # 7
If the rate of tax increase with the increase of level of income, is called
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Progressive tax
Proportional tax
Regressive tax
Value added tax
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Question # 8
When price increases, supply:
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Contracts
Expands
Remains fixed
Becomes zero
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Question # 9
Notes and coins are legal tender money because
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Government keeps gold and silver in their exchange
They are issued by the commercial banks
They are issued by the central bank
People are bound to accept them
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Question # 10
Which is not studied in micro economics ?
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Theory of consumer behaviour
Price theory
Theory of money
Theory of distribution of wealth
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Question # 11
In law of constant return, marginal product
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Increases
Decreases
Remains constant
Remains changing
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Question # 12
Which is not studied in macro economics
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National income
Money and banking
Price theory
Public finance
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Question # 13
Total utility decreases when marginal utility is
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Positive
Negative
Zero
Maximum
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Question # 14
Equation of relationship between quantity of money and value of money, MV=PT is presented by the economist
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Prof Taussing
Prof Fisher
Prof Crowther
Prof Marshall
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Question # 15
Demand for a commodity means
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Desire to purchase
Power to purchase
Price of commodity
All the three
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Question # 16
In the long run monopolist earns profit:
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Normal
Abnormal
Super normal
Both b and c
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