Q. The term 'normal profit' as used in the analysis of equilibrium of the firm under perfect competition, refers to: Earnings of management            Reward for enterpriseReward for innovation  Residual income of a business ...

Q. According to Joseph Schumpeter, profit is the reward for: Innovation            Uncertainty-bearingRisk-taking            Management Answer: Innovation

Q. Who argued that pure profit can arise only in a dynamic economy? F.H. Knight            J.B. ClarkBohm Bawerk      Alfred Marshall Answer: J.B. Clark

Q.  The classical theory explained interest as a reward for: A.           Parting with liquidity             B.            ...

Q. The demand for liquidity preference is governed by: A.           Transaction motives B.            Precautionary motives ...

Q.  On which of the following does the demand for money for speculative motive mainly depend? Income     ProfitsRate of interest   General price level Answer: Rate of interest       

Q.       Which of the following purposes normally does not give rise to the demand for loan able funds? Consumption      SavingInvestment           Hoarding Answer: Saving

Q.       A factor of production, whose supply is fixed in the short run, may get additional earnings. These earnings are generally referred to as: Surplus value       Quasi-rentTransfer ...

Q.       Which of the following factors forms the basis of the Loan able Funds Theory of Interest? A.           Monetary factors        B.            ...

Q. In the context of the firm as a whole, quasi-rent is defined as the excess of the total receipts over the total: Fixed costAverage costFixed and variable cost  Variable cost Answer: Variable cost