NAT II Management Science Economy MCQs With Answers

Question # 1

It is a Federal Tax:

Excise duty

Local Tax

Property Tax

None

Question # 2

Under the kinked demand curve model, an increase in marginal cost will lead to:

An increase in output level and a decrease in price.

A decrease in output level and an increase in price.

A decrease in output level and no change in price.

Neither a change in output level our a change in price.

Question # 3

A monopolistically competitive firm in short run equilibrium:

Will make negative profit (lose money).

Will make zero profit (break-even)

Will make positive profit

Any of the given are possible.

Question # 4

Which of the following is true about supply curve under monopoly?

It is same as the competitive market supply curve

It is the portion of marginal cost curve where marginal costs exceed the minimum value of average variable costs

It is the result of market power and production costs

None of the given statements is true

Question # 5

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

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