4/21/2016

Objective Type Questions for Principle of Economics I.Com Part 1

(a)

Objective Type Questions for Principle of Economics I.Com Part 1 (a)

Principle of Economics (Objective) I.Com Part 1

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Objective Type Questions for Principle of Economics I.Com Part 1 (a)

Principles of Economics Objective Type Questions (a)
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Question 1

WRONG

The quality of a good which satisfies a

human want is called as

Hint:

Servi
ce

Utility

Utility
Marginal
cost

Hint:
Utility

None of these

Hint:
Utility

Question 2

CORRECT

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3

Which Economists presented the law of

diminishing marginal utility?
Robbins
Malthus
Adam Smith
Marshall

Question 3WRONG

The methods of measuring elasticity of supply are

Three
Two
Four
Five
Question 4WRONG

According to law of increasing return, marginal product

Increases
Decreases
Remains constant
None of these
Question 5WRONG

Average revenue is equal to

Price
Total revenue

Marginal revenue
Average cost
Question 6WRONG

When price falls supply

Expands
Contracts
Remains zero
Becomes fixed

Question 7WRONG

The other name of law of diminishing return is

Law of supply
Law of diminishing marginal utility
Law of demand
Law of increasing cost

Question 8WRONG

The elasticity of demand of durable goods is

Zero
More than unity
Less than unity
Equal to unity
Question 9WRONG

Rent or building is included in

Fixed cost
Variable cost
Marginal cost
Selling cost
Question 10WRONG

Who is responsible for profit and loss in the business?

Capitalist
Entrepreneur
Labor
Middleman
Question 11WRONG

National income does not include

Proft
Wages
Interest
Transfer payments

Question 12WRONG

Who presented the quantity theory of money?

Marshall
Robbins

Tausig
Keynes
Question 13WRONG

International trade has the benefits

One
Unlimited
Two
Three
Question 14WRONG

The economy gets maximum prosperity during

Recession
Recovery
Boom
Depression
Question 15WRONG

Usher implies on

Agricultural product
Industrial product
Agricultural & industrial product
None of these

Question 16WRONG

Who described Economics as a science of wealth?

Piguo
Adam Smith
Robbins
Marshall
Question 17WRONG

If total expenditure decreases with the 'rise

in price elasticity of demand will be
Equal to unity
Less than unity
Greater than unity
Equal to zero
Question 18WRONG

Income elasticity shows the relationship between

Income and demand

Income and consumption
Income and price
Income and saving

Question 19WRONG

The supply of land is

Infinity

Fixed
Variable
Zero
Question 20WRONG

The shape of AR and MR. under perfect competition is

Vertical
U-shape
Horizontal to ox-axis
None of these
Question 21WRONG

The supply of perishable goods is

Fixed
Variable
Minor change
Zero
Question 22WRONG

The quality of a commodity which satisfies

the human wants

Usefulness
Loss
Utility
Return

Question 23WRONG

Marginal cost curve always intersects average

cost curve at
The maximum point
The central point
The minimum point
The vertical point
Question 24WRONG

During a year aggregate value of produced

goods and services of a country is called

Per-capita income
Net national income
Personal income
Gross national product
Question 25WRONG

How many methods can be used for cultivation?

One
Two
Three
Four
Question 26WRONG

Reward for labor is

Interest
Wages
Proft
Rent
Question 27WRONG

Due to devaluation exports become

Smaller
Larger
Cheaper
Expensive
Question 28WRONG

Reward for capital is called

Rent
Interest
Wages
Proft
Question 29WRONG

Personal income includes

Direct taxes
Indirect taxes
Undivided profit

Both 2nd and 3rd

Question 30WRONG

Macro Economics was introduced by

Alfred Marshall
J.M. Keynes
N.W. Senior
J.B. Clark
Question 31WRONG

The factor of production from which more

income is earned is called

Land
Labor
Capital
Organization
Question 32WRONG

The other name of the Law of Increasing Return is

Law of Diminishing Costs

Law of Increasing Costs
Law of Diminishing Return
Law of Constant Costs
Question 33WRONG

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In Short-Run under perfect competition a firm can earn

Normal and supernormal profit

Normal and abnormal loss
Normal or ordinary profit
Both A & B

Question 34WRONG

Expenses of wears aid tears of machinery are called

Productive expenses
Non productive expenses
Wages
Depreciation expenses
Question 35WRONG

By whom Economist, the National Income is

the name of the total of production of goods
and services

Adam Smith
Marshall
Fisher
Piguo
Question 36WRONG

Note of Five Hundred Rupees is

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13

Token money
Credit money

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13

Convertible paper money

Inconvertible paper money
Question 37WRONG

The Economist who presented the "Trade

Theory of Absolute Advantage" is

Adam smith
Ricardo
Malthus
Marshall
Question 38WRONG

The numbers of phases of a Trade Cycle are

One
Two
Three
Four
Question 39WRONG

If everybody pays tax according to his

financial position, it is said
Canon of convenience
Canon of equality
Canon of simplicity
Canon of economy

Question 40WRONG

The rate of Ushr on product of agricultural land is

5%
10%
20 %
2%
Question 41WRONG

The founder of neo-classical school of thought was

Adam Smith
Marshall
Robbins
Keynes

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