Economics MCQ Quiz Hub

1. Union leaders are in a better position to bargain for higher wages if demand for labour is:
Elastic
Inelastic
Very large
Permanent

2. Sometimes the supply curve of labour ends:
Downward
Upward
Backward
Firstly upward and then downward

3. In which form the largest percentage of national income is earned:
Interest income
Proprietor s income
Employees wages
Rental income

4. The minimum wage is an example of:
Price floor
Price ceiling
Equilibrium wage
Efficiency of labour

5. A firm maximizes profit if:
MRP = Wage rate
MRP = ARP
MRP is rising
None of these

6. Who is unemployed:
Housewife
College student
A peer who lives on gifts from mureeds
A freshly graduated engineer who is searching for a job

7. Standard of living of workers depends upon their:
Nominal wages
Real wages
Average product
Govt. policy

8. Doctors get higher wages than clerks because:
Doctors are in short supply
Doctors have more respect in society
Doctors are organised in trade unions
People fear doctor s displeasure

9. Under Marginal productivity Theory, reward for labour is determined by:
Owner
Government
Labour
Marginal product

10. The economist Ricardo argued that prices were _____ because land rents were _______
High, High
Low, High
High, Low
Low, Low

11. As for the cost of production of an individual farmer, the rent paid by him:
Enters into the price of his product
Does not enter into price of his product
Is unjustified
None of these

12. He presented a theory of rent:
Malthus
Allama Iqbal
Ricardo
Marshall

13. The following affect rent EXCEPT:
Better location
Fertility of land
Cleverness of landlords
Scarcity of land

14. These are kinds of rent EXCEPT:
Differential rent
Scarcity rent
Mobility rent
Location rent

15. This is capital:
Money
Forests
Machinery
Trademarks

16. According to Keynes interest is a payment for:
Consumer s preference
Producer s preference
Liquidity preference
State Bank s preference

17. Interest is paid because:
Capital is scarce
Capital is productive
Capital is attractive
Capital is surplus

18. With decrease in price of bonds, rate of interest:
Decreases
Increases
Does not change
None of the above

19. Every factor of production gets reward equal to its:
Cost
Marginal product
Price
Increasing return

20. According to Keynes, interest is a payment for:
Use of durable goods
Use of capital
Use of money
Use of land

21. In economics capital refers to:
Money
High quality goods
Trade mark
Machinery and factories

22. If rate of interest is 10% the PV (present value) of Rs. 100 received in 1 years time is:
90
90.9
95
110

23. Professor Knight is famous for his theory of:
Rent
Profit
Population
Wages

24. Profits:
Are residual payment
Are pre-determined
Are fixed contract
Are always higher than wages

25. Profits:
Are lower in the long run than in the short run
Can be negative
Are less in perfect competition than in monopoly
All of the above

26. Profits:
Are necessary
Are unnecessary
Can never be negative
Are illegal

27. Profits arise because an entrepreneur:
Prepares plan
Innovates
Lends money
Both (a) and (b)

28. Profits:
Are less in the long run than in short run
Interest on capital owned by firm
Are less in perfect competition than in monopoly
All of the above are true

29. Gross profit does NOT include:
Rent of land owned by the firm
Interest on capital owned by firm
Pure profit
Taxes

30. Some economists say that profit earner is a kind of:
Rent receiver
Interest receiver
Wage earner
Govt. officer

31. Risks in the business arise because of:
Introduction of the new products
Uncertain policy of rival firms
Changes in tastes
All the above

32. According to Professor Knight risks are of _____ kinds:
2
3
4
many

33. This is not a function of the entrepreneur:
Supervise
Innovate
Lend money
Prepare plan