Question # 1

Law of increasing return is also known as:

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Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

Supply curve shifts due to better technique of production

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Rightward

Leftward

Does not change

Vertical

If the face value of a coin is greater than the value of metal used in:

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Legal money

Token money

Standard money

Both b and c

Who said that economics is normative science ?

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Keynes

Robbins

Marshall

Rocher

Which economist said that abundance of definitions has pressed the neck of economics

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Adam Smith

Robbins

Keynes

Pigou

Quantity theory of money was introduced in an equation by:

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Fisher

Marshall

Crowther

Tausigg

If demand for a commodity changes due to change in price of its substitute, it is called

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Price elasticity

Point elasticity

Cross elasticity

Arc elasticity

Price determined with the equilibrium of demand and supply on some day

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Short period price

Long period price

Market price

Normal price

Quantity theory of money was criticized by:

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Marshall

Sameulson

Keynes

Both b and c

Inflation can be controlled by:

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Fiscal policy

Monetary policy

Trade policy

Both a and b

Under perfect competition average revenue is equal to:

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Average cost

Price

Marginal revenue

Both b and c

If the total expenditure of the consumer increases due to increase in price, then nature of elasticity of demand will be

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Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

Methods to derive economic laws:

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One

Two

Three

Four

What functional relationship is present between demand and price

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positive

inverse

increasing

none of these

A firm earns normal profit

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When price of the commodity is equal to average cost

When price of the commodity is more than average cost

When price of the commodity is less than average cost

When total revenue is more than total costs

In perfect competition the average revenue curve is

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Vertical

Horizontal

Rising

Declining

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

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