Question:

Who argued that “Everything that is produced in the course of a year, every service rendered, every fresh utility brought about is a part of the national wealth.”?

A.

JS Mill

B.

Stanley Jevons

C.

Alfred Marshall

D.

Robert Malthus

Answer» c. Alfred Marshall

Question:

Change in demand due to a change in the price of related good :

A.

Cross demand

B.

Price demand

C.

Income demand

D.

None of these

Answer» a. Cross demand

Question:

The quantity theory of money is primarily a theory of demand for money is stated by:

A.

Marshall

B.

Fisher

C.

Keynes

D.

Friedman

Answer» d. Friedman

Question:

An official reduction in the value of home currency in terms of foreign currency is known as:

A.

Revaluation

B.

Devaluation

C.

Depreciation

D.

Appreciation

Answer» b. Devaluation

Question:

When demand curve is rectangular hyperbola, the value of price elasticity of demand will be:

A.

Zero

B.

One

C.

Greater than one

D.

Infinity

Answer» b. One

Question:

In Fisher’s equation of exchange MV=PT, the variation of which produces a proportional change in price:

A.

M

B.

V

C.

P

D.

T

Answer» a. M

Question:

With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is:

A.

200 units.

B.

400 units.

C.

800 units.

D.

1,600 units.

Answer» c. 800 units.

Question:

Microeconomics deals with:

A.

The theory of factor pricing

B.

The theory of product pricing

C.

The theory of economic welfare

D.

All the above

Answer» d. All the above

Question:

The short run is a time period in which:

A.

All resources are fixed.

B.

The level of output is fixed.

C.

The size of the production plant is variable.

D.

Some resources are fixed and others are variable.

Answer» d. Some resources are fixed and others are variable.

Question:

The MPC has a value:

A.

Greater than one but less than two

B.

Less than one but greater than zero

C.

Greater than two

D.

None of these

Answer» b. Less than one but greater than zero