Question 1

Consumption of capital good in the process of production is called as:

Accepted Answer

A)  capital consumption
B)  depreciation
C)  decay of capital
D)  none of the above B

Question 2

Laws of return shows ---------production function.

Accepted Answer

A)  short-term
B)  medium term
C)  long term
D)  annual A

Question 3

In classical theory the level of employment is a function of:

Accepted Answer

A)  price level
B)  money wage rate
C)  quantity of money
D)  real wage rate D

Question 4

Supply curve represents -------- relationship between quantity and price.

Accepted Answer

A)  direct
B)  inverse
C)  either direct or inverse
D)  none of the above

Question 5

The want satisfying power of a commodity:

Accepted Answer

A)  satisfaction
B)  utility
C)  value
D)  marginal utility

Question 6

Economic Laws are:

Accepted Answer

A)  statement of tendencies
B)  exact and predictable
C)  definite
D)  none

Exam 8: Understanding Economic Concepts and Theories

Consumption of capital good in the process of production is called as: