NAT IIM Management Science Economy Online Test for Pakistani Students

MCQ's Test For NAT II Management Science Economy

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NAT II Management Science Economy

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Question # 1

A market is said to be in equilibrium when:

Question # 2

Due to devaluation exports become:

Question # 3

Real GDP is equal to:

Question # 4

In 2005-06, the crop area of cotton was 3,096 thousand hectares and the crop area of rice was:

Question # 5

To find the profit maximizing level of output, a firm finds the output level where:

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NAT-II Economy Chapter 0 Important MCQ's

Sr.# Question Answer
1
Under the kinked demand curve model, an increase in marginal cost will lead to:
A.
An increase in output level and a decrease in price.
B.
A decrease in output level and an increase in price.
C.
A decrease in output level and no change in price.
D.
Neither a change in output level our a change in price.
2 The other name of law of diminishing return is:
A. Law of supply
B. Law of diminishing marginal utility
C. Law of demand
D. Law of increasing cost
3 The interest rate parity is the basic identity that relates which of the following?
A. Interest rates and exchange rates
B. Interest rates and inflation rate
C. Exchange rates and inflation rate
D. Discount rate and inflation rate
4 Which of the following will be TRUE if real income rose and the interest rate fell following an increase in government purchases?
A. IS curve must be vertical
B. LM curve must be vertical
C. Central Bank must have increased the money supply at the same time
D. Central Bank must have decreased the money supply at the same time
5 In the FY 2005-06 the GDP growth rate of Euro area was 1.3 percent, the developing nations 8.6 percent and the world was:
A. 3.5 percent
B. 4.8 percent
C. 4.5 percent
D. 5.5 percent
6 A nation's balance of payments can be affected by changes in:
A. Foreign income
B. The differential between domestic and foreign interst rates
C. The real exchange rate
D. All of the given options
7 A firm is charging a different price for each unit purchased by a consumer.This is called:
A. First-degree price discrimination
B. Second-degree price discrimination
C. Third-degree price discrimination
D. None of the given options
8 In February 2006, the Avian Influenza was reported by poultry farm in:
A. Hyderabad
B. Karachi
C. Multan
D. Charsadda
9 The economy gets maximum prosperity during:
A. Recession
B. Recovery
C. Boom
D. Depression
10 In inflation prices:
A. Increase
B. Do not change
C. Decrease
D. Become zero

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