1st Year Principles of Economics Full Book Paper

Q1. Multiple choice questions (Attempt all · 15 × 1 = 15)

1. Amount of money attained by selling marginal product is called:

   1. Average revenue product

   2. Marginal revenue product

   3. Total revenue product

   4. None of the above

2. The second name of law of constant return is:

   1. Law of decreasing cost

   2. Law of increasing cost

   3. Law of cost

   4. Law of constant cost

3. In which year Kenyens wrote his book "General theory of employment, interest and money":

   1. 1929

   2. 1931

   3. 1934

   4. 1936

4. A good thing in public finance:

   1. Expenditures are more than income

   2. Income is more than expenditures

   3. Income is equal to expenditures

   4. 2nd and 3rd

5. Reward for labour is called:

   1. Wages

   2. Rent

   3. Interest

   4. Profit

6. Utility is related with:

   1. Usefulness

   2. Useless

   3. Necessities

   4. Desire

7. Which one of the following is not included in the methods of measuring national income:

   1. Method of total according to market prices

   2. Method of total of incomes

   3. Method of total of domestic necessities and desires

   4. Method of total expenditures

8. "International balance of payment is all that transaction for which either foreign exchange is spent or received". This definition is stated by:

   1. Marshall

   2. Samuelson

   3. Ricardo

   4. Hicks

9. Monopoly can also be called:

   1. Perfect competition

   2. Imperfect competition

   3. Competition

   4. None

10. According to the law of supply there is relation in price and supply:

    1. Inverse

    2. Increasing

    3. Negative

    4. Indirect

11. "What performs the functions of money, is money". This definition of money is stated by:

    1. Prof Walker

    2. Prof Marshall

    3. Prof Crowther

    4. Prof Pigou

12. The costs which are directly related to output:

    1. Fixed cost

    2. Variable cost

    3. Total cost

    4. Marginal cost

13. During depression:

    1. Employment increases

    2. Prices decrease

    3. Profit increases

    4. Price increase

14. According to which theory every factor of production gets the reward of its services equal to its marginal product?

    1. Demand and supply theory

    2. Liquidity preference theory

    3. Marginal productivity theory

    4. Uncertainty theory

15. When marginal product is zero total product is:

    1. Maximum

    2. Minimum

    3. Negative

    4. Zero