Q.1)-Equilibrium is a condition that can-
  • Never changes
  • Changes only if some outside factor changes
  • Changes only if some outside factor changes
  • Changes only if government policies changes
Q.2)-A firm is in equilibrium when its-
  • Marginal cost equals the marginal revenue
  • Total cost is maximum
  • Total revenue is maximum
  • Average revenue and marginal revenue are equal
Q.3)-Which of the following does not determine supply of labour?
  • Size and age-structure of population
  • Nature of work
  • Marginal productivity of labour
  • Work-leisure ratio
Q.4)-Extension or construction of quantity demanded of a commodity is a result of a change in the-
  • Unit price of the commodity
  • Income of the consumer
  • Tastes of the consumer
  • Climate of the region
Q.5)-Cross elasticity of demand between petrol and car is-
  • Infinite
  • Positive
  • Zero
  • Negaative
Q.6)- 'Law of demand' implies that when there is excess demand for a commodity, then-
  • Price of the commodity falls
  • Price of the commodity remains same
  • Price of the commodity rises
  • Puantity demanded of the commodity falls
Q.7)-The demand curve shows that price and quantity demand are-
  • Directly related only
  • Directly proportional and also directly related
  • Inversely proportional and also inversely related
  • Inversaly related only
Q.8)-Economic rent does not arise when the supply of a factor unit is-
  • Perfectly inelastic
  • Perfectly elastic
  • Relatively elastic
  • Relatively inelastic
Q.9)-A horizontal demand curve is-
  • Relatively elastic
  • Perfectly elastic
  • Relatively elastic
  • Relatively inelastic
Q.10)-Under increasing returns the supply curve is-
  • positiviely sloped from left to right
  • negitively sloped from left to right
  • parallel to the quantity axis
  • parallel to the price axis