1.

The marginal product of labour curve shows the change in total product resulting from a
a. One unit increase in the quantity of a particular resource used, letting other
resources vary
b. One unit increase in quantity of particular resource used holding other constant
resources
c. Change in cost of variable resource
d. Change in the cost of fixed resource
2. Which of the following conditions shift the supply curve left wards
a. When quantity demand exceeds quality supplied
b. an increase in cost of machinery
c. decrease in wages of worker
d. a technological improvement in production
3. Income of the consumers falls it would lead to condition of
a. Increase in demand of normal goods and decrease in the demand of INF
b. Increase in the demand of substitute good and decrease in the demand of INF
c. Increase in demand of normal good and decrease in demand of cost
d. Decrease in demand of normal goods and increase in demand of deb
4. Production function measures the relationship between
a. Input prices and output prices
b. Input prices and quality of outputs
c. Quality of inputs and quality outputs
d. Quantity of inputs and input prices
5. If the income of consumers falls it would lead to the condition of
a. Increase in demand of normal goods and decrease in debt
b. Increase in demand of substitute goods
c. Increase in demand of normal goods
d. Decrease in demand of normal goods
6. Which of the following cost mostly remain constant as output increases in total production?
a. Marginal cost
b. Average variable cost
c. Total variable cost
d. Total fixed cost
7. Which of the following result cannot be treated as the outcome of market failure?
a. Social costs incurred in the production of goods
b. Wastage of resources take place
c. Equilibrium between supply and demand
d. Effective allocation of resources
8. Packaging of products will be classified as ___ cost
a. Fixed
b. Variable
c. Semi-variable
d. Total
9. Percentage change in the quantity demanded / supplied will always a ___ in elasticity
formula
a. Denominator
b. Numerator
c. Multiplying
d. Divisible
10. Nature of business cycle is ___
a. Cyclical
b. General
c. General or cyclical
d. None of above
11. The central problem of how to produce is resolved by ______
a. demand and supply of factor
b. Demand and supply of goods
c. Relative prices and availability
d. Government intervention
12. In the case of opinion poll methods the demand forecasting is done by taking the inputs from
a. All of above
13. Increase in returns to scale can be explained in terms of
a. Economic of sales
14. Suppose that concern over dietary habit has lead the government to impose restrictions that
limits suppliers to produce only 100 cigarettes as a result _______
a. Supply curve is vertical
15. A store has special offer on cds it reduces price from 150 700 cds and 1300 cds
a. 2.57
16. If the total revenue realised from the sale of 10 fans is 2000 rs and that from sale of 14 fans is
rs 4000 the marginal revenue is
a. 500
17. What is the approximate forecast for December using 3 months moving average Sept 50 oct
45 nov 48
a. 48
18. Arrange the phase of business cycle 1. Peak 2.trough 3.expansion 4. Contraction
a. 3142
19. The state of which all industries in economy are in equilibrium is of
a. General equilibrium
20. _____ refers to the system within a certain geographic area, society or an economy under
which various economic activities such as production
a. Economic system
21. __ refers to the demand for product that arises due to the demand for other products
a. Derived demand
22. Which price of goods increases the consumption of which goods would increase
a. Giffin goods
23. When the demand curve shifts to right an increase in quantity leads to an _____ in the
equilibrium price
a. Increase
24. Supply of wheat from Punjab to Maharashtra could not be increased beyond a limit is
_____example
a. agriculture supply
25. With particular change in consumer income and further change in price level there will be a
shift in the ____ line
a. Budget
26. According to ordinary utility approach if the consumer prefers one commodity over the other
then it ranks them in order of _____________
a. Utility
27. Positive cross elasticity suggest that goods are ____ and negative cross elasticity suggest that
goods are ____
a. Substitute, complimentary
28. When the proportionate change in the quantity supplied is equal to the proportionate
change when the price of product, the supply is ___
a. Unit elasticity
29. If the population growth, advance technologies, new methods of business organization are
the main factors of economic growth and business, the example relates to
a. Trend analysis
30. Which of the following is not present in time series?
a. Operation variation
31. A ___ can be defined as the gains received by the producer when the equilibrium price is
high above the price at which the producer is willing to sale
a. Producer surplus
32. Which method is used by government to regulate monopoly?
a. Rate of return method
b. Merges and acquisition
c. Price capping method
d. All of above
33. Diminishing marginal rate of technical substitution proves the ___ property of isoquant
a. Concave
b. Convex
c. Concave + convex
d. None of the above
34. Increase in return to scale implies
a. For proportionate change in variable factors
b. For proportionate change in fixed factors
c. For proportionate change in both fixed and variable factors
d. For more than proportionate change in both fixed and variable factors
35. The SRMC, SRAC and AVC are ____ due to increase in returns in the beginning followed by
diminishing returns
a. L shaped
b. S shaped
c. U shaped
d. W shaped
36. Which firm operates at its optimum capacity the short run average cost reaches to its
_______
a. Minimum
b. Maximum
c. Minimum maximum
d. None of the above
37. ____ cost includes the financial expenditure incurred by firm in acquiring inputs for the
production of a commodity
a. Opportunity
b. Implicit
c. Accounting
d. None of the above
38. Which of the following is not a feature of monopolistic competition?
 a. Large number of sellers
b. No single sellers has control over
c. Horizontal demand curve
d. Differentiated products
39. A marketer achieves maximum profit at point where ___
a. A marginal revenue is greater than total revenue
b. Marginal revenue is less than total revenue
c. Marginal revenue = total revenue
d. None of the above
40. Which of the following is not treated as an assumption in economics?
a. Existence of perfect competition
b. Existence of equilibrium
c. Consumers are rational
d. There is always equilibrium