Question # 1

If income of government is less than its expenditures, then it is a

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Surplus budget

Deficit budget

Development budget

Balanced budget

TU is maximum where MU of all goods is:

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Minimum

Maximum

Negative

Equal

In case of perfectly elastic supply or infinite elasticity of supply, supply curve is

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Horizontal (parallel to x-axis)

Vertical (parallel to y-axis)

Positive sloped

Negative sloped

Which one of the following is not called Gross national product

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Economic national product

Joint national product

Composite national product

All the three

Monopolist firm in the long run

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Always faces loss

Usually faces loss

Usually earns normal profit

Always earns abnormal profit

Difficulties in barter system:

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Lack of double coincidence of wants

Lack of storing value

Lack of common measure of value

All of these

The revenue collection of government and spending policy is called

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Monetary policy

Fiscal policy

commercial policy

Labour policy

One of the following is not the assumption of quantity theory of money

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Velocity of circulation of legal money should not change

Velocity of Circulation of credit money should not change

Quantity of hoardings should not change

Quantity of goods and services should go on changing

After deducting direct tax from personal income, it is called

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National income

personal income

Disposable personal income

per capital income

Net foreign income is

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Exports - imports

Exports + imports

Income received by exports

Income received by imports

"Anything which is generally accepted as a medium of exchange and also performs the functions of standard of value and a store of value is money"
This definition of money is stated by

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Prof Walker

Prof Marshall

Prof Crowther

Prof Pigou

When supply curve shifts leftwards or up, it is called

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Rise of supply

Fall of supply

Extension of supply

Contraction of supply

One of the following is not included in explicit cost

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Wages of labourers

Reward of entrepreneur's personal labour

Price of raw material

Interest of capital

The coins whose current price is greater than their intrinsic value, are called

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Standard coins

Paper money

Token money

Credit money

When price decreases, supply:

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Contracts

Expands

Remains fixed

Becomes zero

The tax whose burden can be shifted to the customers, is called

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Proportional tax

Progressive tax

Direct tax

Indirect tax

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

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