Question # 1

If supply curve is horizontal (parallel to x-axis) then elasticity of supply is

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Zero

Infinite

Equal to unity

More than unity

If demand curve is parallel to y-axis, then elasticity of demand is

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Equal to unity

More than unity

Less than unity

Zero

Supply curve of perishable goods is:

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Horizontal

Vertical

Infinite

All of them

Regarding time element, the normal price has types

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One

Two

Three

Four

International Monetary fund is

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Local

Regional

National

International

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

International trade is based on the following except

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Different factors of production are required for the production of different goods

Factors of production exist in different ratios in different countries

Factors of production are in abundant quantity in different countries

Factors of production are in limited quantity in different countries

Elasticity of demand for durable goods is

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More elastic

Less elastic

Infinte

Zero

Who said that economics is the science of wealth ?

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Adam Smith

Robbins

Marshall

Pigou

Subsidies means:

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Relief price to consumers

Relief in price to Producers

Surplus budget

Both a and b

The unit of money by which the value of goods and services is expressed is called

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Paper money

Money of account

Legal tender money

Near money

Cause of movement along the supply curve is

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Change in price

Other factors

Change in tax

Change in income

Other tern used for demand for factor is:

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Initial demand

derived demand

Direct demand

Cross demand

What effects are expected on the purchasing power of money during deflation

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Decreases

Increases

Remains constant

2nd and 3rd

Mental or physical work undertaken for reward by human being is called

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Land

Labour

Capital

Organization

The second name of law of increasing return is

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Law of cost

Law of increasing cost

Law of decreasing cost

Law of constant cost

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

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