Question # 1

The per capita income was $742 in 2004-05 but in 2005-06, rose to:

$ 795

$ 847

$ 880

$900

The share of the automobile group in manufacturing group in 2005-06 was:

20.2 percent

29.7 percent

14.4 percent

16.8 percent

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

Rent of building is included in:

Fixed cost

Variable cost

Marginal cost

Selling cost

If we compare Gross Domestic Product (GDP) with Gross National

1. Product (GNP) then:

GNP = GDP - Net income from abroad

GNP = GDP + Net income from abroad

GNP = NNP - Net income from abroad

GNP = NNP + Net income from abroad

In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of:

The aggregate demand, the short-run aggregate supply and the long-run aggregate supply curves

The short-run aggregate supply and the long-run aggregate supply curves

The aggregate demand and the short-run aggregate supply curves

The aggregate demand and the long-run aggregate supply curves

NAT II Management Science Economy MCQs With Answers