Question # 1

If total expenditure of the consumer decreases 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

What is deducted from the GNP to get GDP

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Depreciation allowances

Net income received from abroad

Indirect tax

Transnfer payments

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

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Demand and supply theory

Liquidity preference theory

Marginal productivity theory

Uncertainty theory

When marginal utility is zero, then total utility is

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Minimum

Positive

Maximum

Zero

When supply decreases due to fall in price, it is called:

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Fall in supply

Contraction in supply

Expansion in supply

Rise in supply

The demand curve slopes

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upwards

Horizontal

vertical

downward to the right

If supply does not change, then due to fall of demand

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Equilibrium price decreases

Equilibrium price increases

Equilibrium price does not change

Equilibrium quantity increases

If there is big change in Price and demand, it is called

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Arc elasticity

Point elasticity

Income elasticity

Cross elasticity

Recent international depression was appeared in:

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1936

1990

2005

2008

Expenses of wears and tears of machinery are called

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Productive expenses

Non productive expenses

Wages

Depreciation expenses

Formula method to measure elasticity of supply is related to

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Marshall

Robbins

R.G.D Allen

Flux

Inflation will be useful for

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Labourers

Consumers

Penioners

Industrialist

Quantity of a commodity which a person is ready to purchase at a particular price, is called

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Individual demand

Market demand

Supply

Market Supply

Usually elasticity of demand in equilibrium situation under monopoly is

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Equal than unity

Less than unity

more than unity

Zero

Ceteris paribus means:

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Other things remain the same

Assumptions of the law

Conditions of the law

All of them

Additional amount of money which a firm gets by selling an additional unit of output is called

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Average revenue

Marginal revenue

Total revenue

Revenue

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

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