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. UnitB. Less than unitC. More than unitD. Unlimited

2. The equation P¿MV +M 'V '

T is given by:

A. David RicardoB. Irving FisherC. Lionel RobbinsD. Alfred Marshall

3. Salary of permanent staff is a part of:A. Fixed costB. Variable costC. Marginal costD. None of these

4. The short run average cost curve is:A. L shapedB. U shapedC. Bowl shapedD. Vertical

5. In disposable income this tax is not included:A. IndirectB. DirectC. ProgressiveD. Proportionate

6. Fiscal policy means:A. Industrial policyB. Agriculture policyC. Government revenue and expenditure policyD. Commercial policy

7. The boom phase of trade cycle also known as:

A. CrisesB. ProsperityC. ImprovementD. Recovery

8. Reward without any service is termed as:A. WagesB. InterestC. Transfer paymentsD. None of these

9. The marginal productivity theory was presented by:A. KeynesB. MarshallC. RecardoD. Robbins

10. Change in supply due to rise in price is termed as:A. Contraction of supplyB. Fall in supplyC. Expansion of supplyD. None of these

11. Face value is equal to its intrinsic value in:A. Token moneyB. Credit moneyC. Paper moneyD. Standard money

12. A cost which a firm pays to produce an additional unit is termed as:A. Total costB. Variable costC. Fixed costD. Marginal cost

13. Macroeconomics is also known as:A. Theory of income and employmentB. Price theoryC. Game theoryD. All of these

14. Homogenous products are sold under:A. MonopolyB. Perfect competitionC. OligopolyD. Duopoly

15. Balance of payment includes:A. Physical goodsB. Non physical goods

C. Both of theseD. None of these