Question # 1

If demand changes by 10% due to 10% change in price, then elasticity of demand is called

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Equal to unity

More than unity

Less than unity

Infinite

Which statement is called subject matter of economics

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Problems of working individuals and their solution

Planning of increase in production

Unlimited wants and limited means

Solution of problems of the individuals living away from the society

Cannon,. Pigou and Pareto belonged to school of thought

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Classical

Neo classical

Keynesian

None of these

Which one of the following represents fixed cost

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Price of raw material

Wages

Capital goods

Wages of permanent labour

As factor of production, river and sea are called

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Land

Labour

Capital

Organization

Under monopoly, number of firms is

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Large

Few

One

Two

When average product is maximum, marginal product is:

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Positive

Equal to AP

Zero

Negative

"Purchasing power of money is inverse of level of prices. So study of purchasing power of money is identical with the study of level of prices." These are the words of

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Prof Irving Fisher

Prof Crowther

Prof Pigou

Prof Keynes

If elasticity of supply is less than unity then extending supply curve downward, it passes through or crosses

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y-axis

x-axis

Point of origin

Becomes vertical

Which is the Demand Curve of a frim

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Average Revenue Curve

Marginal Revenue Curve

Total Revenue Curve

Average cost curve

At shut down position:

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AC = AR

AVC = AR

AVC < AR

AVC > AR

Due to rise in demand, demand curve shifts to

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Right

Left

Both sides

None of these

Elasticity of demand for luxuries is

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Equal to unity

More than unity

Less than unity

Zero

By which money business dealing has become easy

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Metalic money

Paper money

Credit money

Near money

In case of fall in demand, demand curve shifts:

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Left side

Right side

Downward

Both (a) and (c)

If an entrepreneur does service, in economics it is called

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Organization

Discipline

Labour

Wage

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

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