Gross profit does NOT include:
1.Rent of land owned by the firm
2.Interest on capital owned by firm
3.Pure profit
4.Taxes
In economics capital refers to:
1.Money
2.High quality goods
3.Trade mark
4.Machinery and factories
Risks in the business arise because of:
1.Introduction of the new products
2.Uncertain policy of rival firms
3.Changes in tastes
4.All the above
The following affect rent EXCEPT:
1.Better location
2.Fertility of land
3.Cleverness of landlords
4.Scarcity of land
According to Keynes interest is a payment for:
1. Consumer s preference
2.Producer s preference
3.Liquidity preference
4.State Bank s preference
According to Keynes, interest is a payment for:
1.Use of durable goods
2.Use of capital
3.Use of money
4.Use of land
According to Professor Knight risks are of _____ kinds:
1.2
2.3
3.4
4.many
As for the cost of production of an individual farmer, the rent paid by him:
1.Enters into the price of his product
2. Does not enter into price of his product
3.Is unjustified
4. None of these
Doctors get higher wages than clerks because:
1.Doctors are in short supply
2.Doctors have more respect in society
3.Doctors are organised in trade unions
4.People fear doctor s displeasure
Every factor of production gets reward equal to its:
1.Cost
2.Marginal product
3.Price
4.Increasing return
He presented a theory of rent:
1.Malthus
2.Allama Iqbal
3.Ricardo
4.Marshall
If rate of interest is 10% the PV (present value) of Rs. 100 received in 1 years time is:
1.90
2.90.9
3.95
4.110
Profits:
1.Are residual payment
2. Are pre-determined
3.Are fixed contract
4.Are always higher than wages
Profits:
1.Are lower in the long run than in the short run
2.Can be negative
3.Are less in perfect competition than in monopoly
4.All of the above
Some economists say that profit earner is a kind of:
1.Rent receiver
2.Interest receiver
3.Wage earner
4.Govt. officer
Standard of living of workers depends upon their:
1.Nominal wages
2.Real wages
3.Average product
4.Govt. policy
This is capital:
1.Money
2.Forests
3.Machinery
4.Trademarks
Union leaders are in a better position to bargain for higher wages if demand for labour is:
1.Elastic
2.Inelastic
3.Very large
4.Permanent
A firm maximizes profit if:
1.MRP = Wage rate
2.MRP = ARP
3.MRP is rising
4.None of these
In which form the largest percentage of national income is earned:
1.Interest income
2.Proprietor s income
3.Employees wages
4.Rental income
Interest is paid because:
1.Capital is scarce
2.Capital is productive
3. Capital is attractive
4.Capital is surplus
Professor Knight is famous for his theory of:
1.Rent
2.Profit
3.Population
4.Wages
Profits arise because an entrepreneur:
1.Prepares plan
2.Innovates
3.Lends money
4. Both (a) and (b)
Profits:
1.Are necessary
2.Are unnecessary
3.Can never be negative
4.Are illegal
Profits:
1.Are less in the long run than in short run
2.Interest on capital owned by firm
3.Are less in perfect competition than in monopoly
4.All of the above are true
Sometimes the supply curve of labour ends:
1.Downward
2.Upward
3.Backward
4.Firstly upward and then downward
The economist Ricardo argued that prices were _____ because land rents were _______
1.High, High
2.Low, High
3.High, Low
4.Low, Low
The minimum wage is an example of:
1.Price floor
2.Price ceiling
3.Equilibrium wage
4.Efficiency of labour
These are kinds of rent EXCEPT:
1.Differential rent
2. Scarcity rent
3.Mobility rent
4.Location rent
This is not a function of the entrepreneur:
1.Supervise
2.Innovate
3.Lend money
4.Prepare plan
Under Marginal productivity Theory, reward for labour is determined by:
1.Owner
2.Government
3.Labour
4.Marginal product
Who is unemployed:
1.Housewife
2.College student
3.A peer who lives on gifts from mureeds
4.A freshly graduated engineer who is searching for a job
With decrease in price of bonds, rate of interest:
1.Decreases
2.Increases
3.Does not change
4.None of the above