1st Year Principles of Economics 1st Quarter Book Paper

Q1. Multiple choice questions (Attempt all · 12 × 1 = 12)

1. Utility is related with:

   1. Usefulness

   2. Useless

   3. Necessities

   4. Desire

2. Reward for labour is called:

   1. Wages

   2. Rent

   3. Interest

   4. Profit

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

   1. Inverse

   2. Increasing

   3. Negative

   4. Indirect

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

   1. 1929

   2. 1931

   3. 1934

   4. 1936

5. Which one is not an economic want:

   1. Cloth

   2. Watch

   3. Air

   4. Car

6. Blessings like air, sun, rain existing on land are included in factor of production:

   1. Labour or human resources

   2. Capital or monetary resources

   3. Land or natural resources

   4. Organization

7. When supply curve shifts leftward or up, it is called:

   1. Rise of supply

   2. Fall of supply

   3. Extension of supply

   4. Contraction of supply

8. Who did name economics as science of satisfying unlimited wants with limited means:

   1. Marshall

   2. Adam Smith

   3. Robbins

   4. Pigou

9. First and basic law of consumption is:

   1. Law of demand

   2. Law of decreasing return

   3. Law of supply

   4. Law of diminishing marginal utility

10. In modern term, factors of production are called:

    1. Inputs

    2. Productive services

    3. Inputs and productive services

    4. Production of goods and services

11. When supply decreases due to other factors besides price, it is called:

    1. Extension of supply

    2. Contraction of supply

    3. Rise of supply

    4. Fall of supply

12. Laws which reflect religion or society:

    1. Economic laws

    2. State laws

    3. Scientific laws

    4. Moral laws