Question # 1

What was the difficulty in the barter System:

Excess of goods

Difference language

Lack of co-incidence

Difference in profession

The growth rate of Sri-lanka in 2005-06?

4.4 percent

5.9 percent

1.8 percent

7.5 percent

In inflation prices:

Increase

Do not change

Decrease

Become zero

Which of the following event will lead towards cost-push inflation and therefore stagflation?

An increase in taxes on individuals

A decrease in real interest rates

A union settlement that increases wage levels

An increase in government purchases

What is the interest rate effect that explains why the aggregate demand curve slopes downward?

It refers to the effect of changes in the price level on quantity of investment demanded which in turn affects interest rates

It refers to the effect of interest rates on borrowing which in turn affects consumption spending.

It refers to the effect of changes in the price level on interest rates which in turn affects the quantity of investment demanded

It refers to the shifts in aggregate demand when interest rates change

How much amount was allocated for Prime Minister's special intiative for livestock during 2005-06 ?

Rs. 672 million

Rs. 812 million

Rs. 1,696 million

Rs. 2,400 million

NAT II Management Science Economy MCQs With Answers