laboursonline – MCQs, Mock Tests | Economics Economics Wages Rent Interest and Profit

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

✅ Correct Answer: 2

Sometimes the supply curve of labour ends:

1. Downward
2. Upward
3. Backward
4. Firstly upward and then downward

✅ Correct Answer: 3

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

1. Interest income
2. Proprietor s income
3. Employees wages
4. Rental income

✅ Correct Answer: 3

The minimum wage is an example of:

1. Price floor
2. Price ceiling
3. Equilibrium wage
4. Efficiency of labour

✅ Correct Answer: 1

A firm maximizes profit if:

1. MRP = Wage rate
2. MRP = ARP
3. MRP is rising
4. None of these

✅ Correct Answer: 1

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

✅ Correct Answer: 4

Standard of living of workers depends upon their:

1. Nominal wages
2. Real wages
3. Average product
4. Govt. policy

✅ Correct Answer: 2

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

✅ Correct Answer: 1

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

1. Owner
2. Government
3. Labour
4. Marginal product

✅ Correct Answer: 4

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

1. High, High
2. Low, High
3. High, Low
4. Low, Low

✅ Correct Answer: 3

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

✅ Correct Answer: 1

He presented a theory of rent:

1. Malthus
2. Allama Iqbal
3. Ricardo
4. Marshall

✅ Correct Answer: 3

The following affect rent EXCEPT:

1. Better location
2. Fertility of land
3. Cleverness of landlords
4. Scarcity of land

✅ Correct Answer: 3

These are kinds of rent EXCEPT:

1. Differential rent
2. Scarcity rent
3. Mobility rent
4. Location rent

✅ Correct Answer: 3

This is capital:

1. Money
2. Forests
3. Machinery
4. Trademarks

✅ Correct Answer: 3

According to Keynes interest is a payment for:

1. Consumer s preference
2. Producer s preference
3. Liquidity preference
4. State Bank s preference

✅ Correct Answer: 3

Interest is paid because:

1. Capital is scarce
2. Capital is productive
3. Capital is attractive
4. Capital is surplus

✅ Correct Answer: 1

With decrease in price of bonds, rate of interest:

1. Decreases
2. Increases
3. Does not change
4. None of the above

✅ Correct Answer: 2

Every factor of production gets reward equal to its:

1. Cost
2. Marginal product
3. Price
4. Increasing return

✅ Correct Answer: 2

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

✅ Correct Answer: 3

In economics capital refers to:

1. Money
2. High quality goods
3. Trade mark
4. Machinery and factories

✅ Correct Answer: 4

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

✅ Correct Answer: 2

Professor Knight is famous for his theory of:

1. Rent
2. Profit
3. Population
4. Wages

✅ Correct Answer: 2

Profits:

1. Are residual payment
2. Are pre-determined
3. Are fixed contract
4. Are always higher than wages

✅ Correct Answer: 1

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

✅ Correct Answer: 4

Profits:

1. Are necessary
2. Are unnecessary
3. Can never be negative
4. Are illegal

✅ Correct Answer: 1

Profits arise because an entrepreneur:

1. Prepares plan
2. Innovates
3. Lends money
4. Both (a) and (b)

✅ Correct Answer: 4

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

✅ Correct Answer: 4

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

✅ Correct Answer: 4

Some economists say that profit earner is a kind of:

1. Rent receiver
2. Interest receiver
3. Wage earner
4. Govt. officer

✅ Correct Answer: 3

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

✅ Correct Answer: 4

According to Professor Knight risks are of _____ kinds:

1. 2
2. 3
3. 4
4. many

✅ Correct Answer: 1

This is not a function of the entrepreneur:

1. Supervise
2. Innovate
3. Lend money
4. Prepare plan

✅ Correct Answer: 3