Question # 1

The long run aggregate supply curve will shift to the right if:

The price level increases.

Factors of production (such as labor and capital) increase

Expenditures (such as consumption and net exports) increase.

The prices of inputs used to produce goods and services (such as wages and the price of oil)descreases

According to law of diminishing marginal utility, the marginal utility:

Increases

Remains constant

Diminshes

Negative

The interest rate parity is the basic identity that relates which of the following?

Interest rates and exchange rates

Interest rates and inflation rate

Exchange rates and inflation rate

Discount rate and inflation rate

Who is responsible for profit and loss in the business:

Capitalist

Entrepreneur

Labour

Middleman

The other name of law of diminishing return is:

Law of supply

Law of diminishing marginal utility

Law of demand

Law of increasing cost

Rent of building is included in:

Fixed cost

Variable cost

Marginal cost

Selling cost

NAT II Management Science Economy MCQs With Answers