Question # 1

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

Choose an answer

Equal to unity

Less than unity

More than unity

Elasticity of demand = zero

According to Prof. Kitchen a trade cycle completes in

Choose an answer

Two years six months

Three years or Fifty years

Fifty years or Sixty years

Sixty years or Seventy years

When marginal utility is positive, total utility

Choose an answer

Goes on decreasing

Goes on increasing

Does not change

Is zero

Gross national product means

Choose an answer

Total of price of all goods produced in a country in year

Total of price of all consumer goods produced in the economy during a year

Total of goods and services produced in the economy during a year

Total of monetary value of goods and services produced during a year in the economy

Prices during the situation of inflation

Choose an answer

Increase

Decrease

Do not change

Become zero

Which one of the following public expenditures is related to transport

Choose an answer

Police

Defence

Railway

Public education

The base of international trade theory of Adam Smith is

Choose an answer

Absolute advantage

Comparative cost

Cheaper cost

Low cost

The conditions which are essentially kept constant for the application of economic laws, are called

Choose an answer

Changes

Assumptions

Limitations

Theories

Exceptions, or limitations of law of demand have been stated by

Choose an answer

Professor Marshall

Professor Adam Smith

Professor Benham

Professor Robbins

If quantity demanded for a commodity changes due to the change in income, it is called

Choose an answer

Price elasticity

Point elasticity

Cross elasticity

Income elasticity

According to which theory every factor of production gets the reward of its services equal to its marginal product

Choose an answer

Demand and supply theory

Liquidity preference theory

Marginal productivity theory

Uncertainty theory

Capital goods are those which can satisfy human wants:

Choose an answer

Directly

Indirectly

Proportionate

None of these

Economics is a science

Choose an answer

Political

Spiritual

Social

Scientific

Next best alternative use of resources is known as:

Choose an answer

Implicit cost

Explicit cost

Opportunity cost

Sunk cost

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

Choose an answer

Will increase its price

Will decrease its price

Will not change its price

None of these

During depression

Choose an answer

Employment increases

Prices decrease

Profit increases

Prices increase

More Classes

Other Links

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer