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

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

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

All the factors production can be hired except.

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Land

Labour

Capital

Organization

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

To which area of England Adam Smith belonged

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Wales

Scotland

Ireland

London

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

When price increases, supply:

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Contracts

Expands

Remains fixed

Becomes zero

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

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

In law of constant return, marginal product

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Increases

Decreases

Remains constant

Remains changing

Which is not studied in macro economics

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National income

Money and banking

Price theory

Public finance

Total utility decreases when marginal utility is

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Positive

Negative

Zero

Maximum

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

Demand for a commodity means

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Desire to purchase

Power to purchase

Price of commodity

All the three

In the long run monopolist earns profit:

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Normal

Abnormal

Super normal

Both b and c

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

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