Question # 1

National income does not include:

Profit

Wages

Interest

Transfer payments

A good for which income and quantity demanded are inversely related is known as:

Inferior good

Complementary good

Normal good

None of the given options

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

Reward for capital is called:

Rent

Interest

Wages

Profit

Which of the following economists came up with a theory regarding the tradeoff between unemployment and inflation?

A.W. Phillips

John Maynard Keynes

Joseph Schumpeter

Milton Friedman

In 2005-06, the percentage of total investment to GDP was:

8 percent

10percent

15percent

20percent

NAT II Management Science Economy MCQs With Answers