Wages Rent Interest and Profit 03 Mcqs Preparation Online

1. Profits:

A. Are less in the long run than in short run

B. Are less in perfect competition than in monopoly

C. Interest on capital owned by firm

D. All of the above are true

2. Gross profit does NOT include:

A. Interest on capital owned by firm

B. Rent of land owned by the firm

C. Pure profit

D. Taxes

3. Profits:

A. Are residual payment

B. Are always higher than wages

C. Are pre-determined

D. Are fixed contract

4. Some economists say that profit earner is a kind of:

A. Interest receiver

B. Rent receiver

C. Wage earner

D. Govt. officer

5. If rate of interest is 10% the PV (present value) of Rs. 100 received in 1 years time is:

A. 95

B. 90.9

C. 110

D. 90

6. Profits arise because an entrepreneur:

A. Prepares plan & Innovates

B. Prepares plan

C. Innovates

D. Lends money

7. In economics capital refers to:

A. Machinery and factories

B. High quality goods

C. Trade mark

D. Money

8. Professor Knight is famous for his theory of:

A. Wages

B. Profit

C. Population

D. Rent

9. Profits:

A. Can be negative

B. Are lower in the long run than in the short run

C. All of the above

D. Are less in perfect competition than in monopoly

10. Profits:

A. Are necessary

B. Can never be negative

C. Are illegal

D. Are unnecessary

Wages Rent Interest and Profit 03 Mcqs Preparation Online

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