Question # 1

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

If quantity demand changes due to the change in income, it is called:

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Point Elasticity of demand

Arc Elasticity of demand

Income Elasticity of demand

Price Elasticity of demand

Which is subtracted from gross national product to find gross domestic product

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Depreciation allowance

Net income received from foreign sources

Indirect taxes

Transfer payments

Inductive method of deriving economic laws

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We move from general conditions to particulars conditions

We move from particular conditions to general conditions

Facts are stated in simple and easy way

Stated in general way

If the demand for a commodity is more elastic, then an entrepreneur in order to increase his profit

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Will increase its price

Will decrease its price

Will not change its price

None of these

Guides finance minister for levying tax on the income of the people

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Law of demand

Law of equi marginal utility

Law of diminishing marginal utility

Law of supply

In economics, every mental or physical struggle undertaken for reward, is called

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Land

Labour

Capital

Organization

The relationship between price and quantity supplied is:

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Inverse

Positive

Infinite

Zero

If due to a very slight decrease in price, demand goes on increasing, elasticity of demand will be

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More than unity

Less than unity

Infinite

Zero

Methods to derive economic laws:

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One

Two

Three

Four

In a production process, when units of variable factors along with the fixed factor of production are increased, marginal cost remains the same, this tendency in economics is called

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Law of decreasing cost

Law of constant cost

Law of increasing cost

Law of decreasing return

In balance of payment are included

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Visible items

Invisible items

Visible and invisible items

Material items

In how many parts professor Adam smith divided his book "Wealth of nations"

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Two

Three

Four

Five

Recent international depression was appeared in:

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1936

1990

2005

2008

The term "Price Maker" is used in:

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Perfect competition

Oliogopoly

Monopoly

Monopsony

Which of the following stated that utility is measurable

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Marshall

Adam Smith

Robbins

Keynes

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

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