ECONOMICS (X1)

Preliminary Examination 2015

Time: 20 minutes
marks : 15
SECTION: A (MULTIPLE CHOICE QUESTIONS)
Q1: choose the correct option from each of the given statement:

1. If the point is located mid of demand curve then elasticity of demand will be:
A. Unit
B. Less than unit
C. More than unit
D. Unlimited
2. The equation P

3.

4.

5.

6.

7.

8.

MV + M ' V '
T

is given by:

A. David Ricardo
B. Irving Fisher
C. Lionel Robbins
D. Alfred Marshall
Salary of permanent staff is a part of:
A. Fixed cost
B. Variable cost
C. Marginal cost
D. None of these
The short run average cost curve is:
A. L shaped
B. U shaped
C. Bowl shaped
D. Vertical
In disposable income this tax is not included:
A. Indirect
B. Direct
C. Progressive
D. Proportionate
Fiscal policy means:
A. Industrial policy
B. Agriculture policy
C. Government revenue and expenditure policy
D. Commercial policy
The boom phase of trade cycle also known as:
A. Crises
B. Prosperity
C. Improvement
D. Recovery
Reward without any service is termed as:

A. Wages
B. Interest
C. Transfer payments
D. None of these
9. The marginal productivity theory was presented by:
A. Keynes
B. Marshall
C. Recardo
D. Robbins
10.Change in supply due to rise in price is termed as:
A. Contraction of supply
B. Fall in supply
C. Expansion of supply
D. None of these
11.Face value is equal to its intrinsic value in:
A. Token money
B. Credit money
C. Paper money
D. Standard money
12.A cost which a firm pays to produce an additional unit is termed as:
A. Total cost
B. Variable cost
C. Fixed cost
D. Marginal cost
13.Macroeconomics is also known as:
A. Theory of income and employment
B. Price theory
C. Game theory
D. All of these
14.Homogenous products are sold under:
A. Monopoly
B. Perfect competition
C. Oligopoly
D. Duopoly
15.Balance of payment includes:
A. Physical goods
B. Non physical goods
C. Both of these
D. None of these