Question:

The difference between GNP at Factor Cost and NNP at Factor Cost is:

A.

Imports

B.

Depreciation

C.

Taxes on Agriculture

D.

Net income from abroad

Answer» d. Net income from abroad

Question:

Change in quantity supplied of a product can result from:

A.

Changes in own price

B.

Changes in cost of production

C.

Change in technology

D.

Change in price of related products

Answer» a. Changes in own price

Question:

Which of the following has a U shape?

A.

average fixed cost curve

B.

total cost curve

C.

average variable cost curve

D.

total variable cost curve

Answer» c. average variable cost curve

Question:

If the demand curve is linear and negatively sloped, the marginal revenue curve has a slope:

A.

Negative

B.

Positive

C.

Neither negative nor positive

D.

Either negative or positive

Answer» a. Negative

Question:

Commodities bought in larger quantities when income rises are called:

A.

Normal goods

B.

Inferior goods

C.

Giffen goods

D.

None

Answer» a. Normal goods

Question:

Prof. Robbin’s definition of Economics is:

A.

Scarcity definition

B.

Growth definition

C.

Welath definition

D.

Welfare definition

Answer» a. Scarcity definition

Question:

A theory is:

A.

An assumption

B.

A validated hypothesis

C.

An ‘if then’ proposition

D.

A hypothesis

Answer» b. A validated hypothesis

Question:

AFC curve will always be

A.

rectangular hyperbola

B.

u shaped

C.

horizontal

D.

downward sloping

Answer» d. downward sloping

Question:

Implicit cost of a factor of production is determined by its

A.

sunk cost

B.

variable cost

C.

fixed cost

D.

opportunity cost

Answer» a. sunk cost

Question:

Envelope curve is

A.

long run marginal cost curve

B.

long run average cost curve

C.

total cost curve

D.

none of the above

Answer» d. none of the above