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21.

In economics capital refers to:

A.	Money	B.	High quality goods
C.	Trade mark	D.	Machinery and factories

22.

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

A.	90	B.	90.9
C.	95	D.	110

23.

Professor Knight is famous for his theory of:

A.	Rent	B.	Profit
C.	Population	D.	Wages

24.

Profits:

A.	Are residual payment	B.	Are pre-determined
C.	Are fixed contract	D.	Are always higher than wages

25.

Profits:

A.	Are lower in the long run than in the short run	B.	Can be negative
C.	Are less in perfect competition than in monopoly	D.	All of the above

26.

Profits:

A.	Are necessary	B.	Are unnecessary
C.	Can never be negative	D.	Are illegal

27.

Profits arise because an entrepreneur:

A.	Prepares plan	B.	Innovates
C.	Lends money	D.	Both (a) and (b)

28.

Profits:

A.	Are less in the long run than in short run	B.	Interest on capital owned by firm
C.	Are less in perfect competition than in monopoly	D.	All of the above are true

29.

Gross profit does NOT include:

A.	Rent of land owned by the firm	B.	Interest on capital owned by firm
C.	Pure profit	D.	Taxes

30.

Some economists say that profit earner is a kind of:

A.	Rent receiver	B.	Interest receiver
C.	Wage earner	D.	Govt. officer