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111.

In the context of the firm as a whole, quasi-rent is defined as the excess of the total receipts over the total:

A.	Fixed cost	B.	Average cost
C.	Fixed and variable cost	D.	Variable cost

112.

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

A.	Surplus value	B.	Quasi-rent
C.	Transfer earnings	D.	Supernormal profit

113.

Which of the following factors forms the basis of the Loan able Funds Theory of Interest?

A.	Monetary factors	B.	Psychological factors
C.	Technical factors	D.	Monetary and non monetary factors

114.

Which of the following purposes normally does not give rise to the demand for loan able funds?

A.	Consumption	B.	Saving
C.	Investment	D.	Hoarding

115.

On which of the following does the demand for money for speculative motive mainly depend?

A.	Income	B.	Profits
C.	Rate of interest	D.	General price level

116.

The demand for liquidity preference is governed by:

A.	Transaction motives	B.	Precautionary motives
C.	Speculative motives	D.	All of these

117.

Identify the neo-classical theory of the rate of interest:

A.	Liquidity-preference theory	B.	Time preference theory
C.	Abstinence theory	D.	Loan able funds theory

118.

The classical theory explained interest as a reward for:

A.	Parting with liquidity	B.	Abstinence
C.	Saving	D.	Inconvenience

119.

According to Joseph Schumpeter, profit is the reward for:

A.	Innovation	B.	Uncertainty-bearing
C.	Risk-taking	D.	Management

120.

The term 'normal profit' as used in the analysis of equilibrium of the firm under perfect competition, refers to:

A.	Earnings of management	B.	Reward for enterprise
C.	Reward for innovation	D.	Residual income of a business