4/21/2016

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

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

Principle of Economics (Objective) I.Com Part 1

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

Principles of Economics Objective Type Questions (b)

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Question 1

PARTIAL-CREDIT

The supply of goods depends on

Price
Income
Price and Income
Utility

Hint:
Price

Question 2

WRONG

The market price is determined when

Supply is more than demand

Demand is more than supply
Demand is equal to supply
Demand is less elastic the supply is more elastic
Question 3

WRONG

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

The symbol of term utility is

Y
X
M
U
Question 4

WRONG

The Law of diminishing Marginal utility applies in

Wealth
Jeweler
Fashionable items
Necessities
Question 5

WRONG

Which is the equation of supply?

Q 2P 100 = 0
Q + 2P 2 = 0
Q = a bp
Q= 10P
Question 6 WRONG

Which method is not the method of measurement of

National Income?
National income at market prices
National income at factor earnings
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Method of national needs

Total expenditure method

Question 7

WRONG

The relationship of value of money with the quantity of

money is

Direct
Indirect
Inverse
None of them
Question 8

WRONG

What remains after the deduction of direct tax from the

personal income?

NNP
NNI
DPI
GNP
Question 9

WRONG

What is deducted from the GNP to get GDP?

Depreciation allowances
Net income received from abroad
Indirect tax
Transfer payments
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Question 10

WRONG

What was the inconvenience of the Barter System?

Bumper product
Double coincidence of goods
Difference in language
Difference in professions

Question 11

WRONG

The inflation is useful for

The laborer
The consumer
Industrialist
Pensioner

Question 12

WRONG

The innovation theory of trade cycles was presented by

Hayek
Hawtray
Schumpeter
Pigou

Question 13

WRONG

Federal tax is

Excise duty
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Property tax
Local tax
None of them

Question 14

WRONG

The canons of taxation are described by

Marshall
Robbins
Keynes
Adam Smith
Question 15

WRONG

The Principles of Economics was written in

1970
1890
1709
1809
Question 16

WRONG

The power of a good or service to satisfy human want

is called as

Supply
Demand
Stock
Utility
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Question 17

WRONG

Another name of unitary method is

Total satisfaction method

Total expenditure method
Total revenue method
Both 2nd and 3rd
Question 18

WRONG

When demand changes due to other factors except

price, then it is called as

Contraction of demand
Extension of demand
Rise and fall in demand
Extension and contraction of demand
Question 19

WRONG

When marginal product is zero, then total product

Increases
Decreases
Is at maximum
None of these
Question 20

WRONG

The shape of average cost curve in short run is

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

Vertical
Horizontal
Positively sloped
U - shaped

Question 21

WRONG

One of the following is not condition of perfect

competition

Large number of buyers

Homogeneous product
Elastic supply of factors
No entry for new firms
Question 22

WRONG

When a firm's average total cost is equal to price, then

it is called as

Normal profit
Abnormal profit
Normal loss
Abnormal loss
Question 23

WRONG

The supply of land is

Fixed
Variable
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Unlimited
Marginal

Question 24

WRONG

How many methods for measurement of National

Income Are?

5
4
3
2
Question 25

WRONG

If face value is equal to the metal value of a coin, it

is called as

Paper money
Token money
Credit money
Standard money
Question 26

WRONG

Demand pull inflation is caused by

Increase in interest rate

Increase in consumption expenditure
Increase in wages
Decrease in bank credit
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Question 27

WRONG

Balance of payments includes

Goods only
Services only
Goods and services
None of these

Question 28

WRONG

If rate of tax increase as income increases, is called as

Direct tax
Progressive tax
Regressive tax
Proportional tax

Question 29

WRONG

Zakat means

Growth
Purification
Tax
Both a and b

Question 30

WRONG

Who wrote the book named Principles of Economics

Adam Smith
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Keynes
Marshall
Robbins

Question 31

WRONG

Elasticity of demand for luxuries is

Equal to unity
More than unity
Less than unity
Zero
Question 32

WRONG

If supply curve is vertical, then elasticity of supply is

Zero
Infinite
Equal to unity
More than unity
Question 33

WRONG

According to which Economist, utility is measurable

Marshall
Adam Smith
Robbins
Keynes

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

Question 34

WRONG

Which one is not called land?

Rain
Mountain
Forests
Mangla Dam
Question 35

WRONG

When total product is maximum, marginal product will

be

Positive
Negative
Zero
Decreasing
Question 36

WRONG

The costs which change with the change in output

are called

Total costs
Fixed costs
Variable costs
Marginal costs
Question 37

WRONG

A monopolist firm usually earns

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

Normal profit
Abnormal profit
Minimum loss
Abnormal loss

Question 38

WRONG

Who did present marginal productivity theory?

Ricardo
Marshall and J.B. Clark
Keynes
Malthus
Question 39

WRONG

The income which a person can use according to his

will is called

Personal income
Disposable personal income
Net income
Per capital income
Question 40

WRONG

The money, whose face value is equal to its

intrinsic value, is called

Token money
Standard money
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Objective Type Questions for Principle of Economics I.Com Part 1 (b)

Paper money
Credited money

Question 41

WRONG

Economy gets prosperity during

Recession
Depression
Boom
Recovery

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