13.If the market price of a product increases from Rs. 20 to Rs. 40 and in response, the quantity demanded decreases from 200 units to 80 units, the value of its price elasticity of demand is: (1 Point) 0.2 0.6 0,8 1. 14.Marginal product of labor means (1 Point) change in labor divided by change in output Addition to total product by using next unit of labor Total product divided by next unit of labor Total product divided by labor 15.The demand for and supply of a good are in equilibrium. An indirect tax is levied on the good. Which one of the following will show the new equilibrium? (1 Point) Shift in the supply curve to right Shift in the demand curve to right Shift in the supply curve to left Shift in the demand curve to left 16.When consumer income increases then (1 Point) Budget line shift upward Indifference curve shift downward Budget line move towards x-axes Budget line move towards y-axes 17.Accounting profit is calculated by following method (1 Point) Subtracting implicit and explicit cost from total revenue Adding implicit cost with total revenues Subtracting explicit cost from total revenue Subtracting implicit cost from total revenue 18.Shift in consumer equilibrium due to change in price is called (1 Point) Price effect Income effect Substitution effect complementary effect 19.When price of motor bike rises by 25% and its sales fall by 33% then price elasticity would be (1 Point) 25 1.33 3.33 1.56 20.Which of the following is NOT included in the explicit costs of a firm? (1 Point) Wages paid for labor Interest paid for capital Payments of purchases of material Normal Profit 21.As a business man you are investing Rs.100,000, and borrowing Rs.60,000 from bank with 10% interest rate and use Rs. 40,000 from saving then implicit cost would be (1 Point) 10,000 6000 5500 4000 22.Marginal rate of substitution of X for Y along an ordinary indifference curve is: (1 Point) Diminishing Increasing Constant Zero 23.Which one of the following is a basic economic problem? (1 Point) Inflation and Unemployment Unlimited wants and scarce resources Lower income and higher Indirect taxes Recession 24. The product B currently sells 300 units at income Rs. 5,000, its demand extends to 400 units as income of consumer rises Rs.10,000 then income elasticity would be (1 Point) 1 3.33 0.23 0.33 25.Theoretical economics has two branches (1 Point) Microeconomics and Macroeconomics Positive economics and Normative Economics Applied Economics and Basic Economics Business Economics and Microeconomics