Economics/Economics Wages Rent Interest and Profit Sample Test,Sample questions

Question:
  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


Question:
  In economics capital refers to:

1.Money

2.High quality goods

3.Trade mark

4.Machinery and factories


Question:
  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


Question:
  The following affect rent EXCEPT:

1.Better location

2.Fertility of land

3.Cleverness of landlords

4.Scarcity of land


Question:
 According to Keynes interest is a payment for:

1. Consumer s preference

2.Producer s preference

3.Liquidity preference

4.State Bank s preference


Question:
 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


Question:
 According to Professor Knight risks are of _____ kinds:

1.2

2.3

3.4

4.many


Question:
 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


Question:
 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


Question:
 Every factor of production gets reward equal to its:

1.Cost

2.Marginal product

3.Price

4.Increasing return


Question:
 He presented a theory of rent:

1.Malthus

2.Allama Iqbal

3.Ricardo

4.Marshall


Question:
 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


Question:
 Profits:

1.Are residual payment

2. Are pre-determined

3.Are fixed contract

4.Are always higher than wages


Question:
 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


Question:
 Some economists say that profit earner is a kind of:

1.Rent receiver

2.Interest receiver

3.Wage earner

4.Govt. officer


Question:
 Standard of living of workers depends upon their:

1.Nominal wages

2.Real wages

3.Average product

4.Govt. policy


Question:
 This is capital:

1.Money

2.Forests

3.Machinery

4.Trademarks


Question:
 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


Question:
A firm maximizes profit if:

1.MRP = Wage rate

2.MRP = ARP

3.MRP is rising

4.None of these


Question:
In which form the largest percentage of national income is earned:

1.Interest income

2.Proprietor s income

3.Employees wages

4.Rental income


Question:
Interest is paid because:

1.Capital is scarce

2.Capital is productive

3. Capital is attractive

4.Capital is surplus


Question:
Professor Knight is famous for his theory of:

1.Rent

2.Profit

3.Population

4.Wages


Question:
Profits arise because an entrepreneur:

1.Prepares plan

2.Innovates

3.Lends money

4. Both (a) and (b)


Question:
Profits:

1.Are necessary

2.Are unnecessary

3.Can never be negative

4.Are illegal


Question:
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


Question:
Sometimes the supply curve of labour ends:

1.Downward

2.Upward

3.Backward

4.Firstly upward and then downward


Question:
The economist Ricardo argued that prices were _____ because land rents were _______

1.High, High

2.Low, High

3.High, Low

4.Low, Low


Question:
The minimum wage is an example of:

1.Price floor

2.Price ceiling

3.Equilibrium wage

4.Efficiency of labour


Question:
These are kinds of rent EXCEPT:

1.Differential rent

2. Scarcity rent

3.Mobility rent

4.Location rent


Question:
This is not a function of the entrepreneur:
 

1.Supervise

2.Innovate

3.Lend money

4.Prepare plan


Question:
Under Marginal productivity Theory, reward for labour is determined by:

1.Owner

2.Government

3.Labour

4.Marginal product


Question:
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


Question:
With decrease in price of bonds, rate of interest:

1.Decreases

2.Increases

3.Does not change

4.None of the above


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  12. Economics Nature and Scope of Economics
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  14. Economic Development and Planning
  15. Economics Balance of Payments
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  23. Economics Demand and Supply Set-1
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  26. Economics Scale Of Production and Laws of Returns
  27. Economics Transport Communication and Human Resources
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  30. Economics Great Economists and Their Work Set-1
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  35. Economics World Economy
  36. Economics National Income Accounting Set-2
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