111. Capital is one of the three fundamental inputs called factors of production which is a produced and durable input and is itself an output of an economy. Which from the following is NOT among capital?
(A) Clothing
(B) Machines
(C) Highways
(D) Buildings

112. The economic term used to rank countries according to human development is
(A) GDP Per Capita
(C) Gini

113. The ultimate goal of economic science is to
(A) improve the living standard of people
(B) obtain the highest possible GDP
(C) minimize the unemployment
(D) obtain equilibrium between inflation and employment

114. In which from the following questions, we can only examine the likely consequences of alternative policies, and the answer can be resolved only by discussions?
(A) Do higher interest rates slow the economy?
(B) Do higher interest rates lower inflation?
(C) Should a country lower tariff on imports?
(D) Does higher employment raise the inflation?

115.What is meant by entrepôt trade?
(A) Trade among three countries
(B) Importing duty-free goods only
(C) Re-importing goods previously exported
(D) Re-exporting goods previously imported

116. The conflict of interest between owners of a company and the management of the company is termed as
(A) company dilemma
(B) company trade-off
(C) owner-manager problem
(D) principal-agent problem

117. The term “oligopoly” means
(A) monopoly
(B) few sellers
(C) socialism
(D) many sellers

118. In a monopolistic competition, a business finds its maximum-profit position where
(A) MR > MC
(B) MR < MC
(C) MR = MC
(D) MR + MC = 1

119. In a perfect competition, maximum profit occurs where marginal revenue equals
(A) price
(B) cost
(C) marginal cost
(D) marginal profit

120. A businessman or a company should accept investments that have _____ net present values.
(A) positive
(B) negative
(C) zero
(D) constant


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