Question # 1

A market is said to be in equilibrium when:

Demand equals output

There is downward pressure on price

The amount consumers wish to buy at the current price equals the amount producers wish to sell at that price

All buyers are able to find sellers willing to sell to them at the current price

The methods of measuring elasticity of supply are:

Three

Two

Four

Five

The quality of a commodity which satisfies the human wants:

Usefulness

Loss

Utility

Return

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

$ 795

$ 847

$ 880

$900

Which of the following is TRUE for a Giffen good?

Its marginal utility is zero

Its demand curve is perfectly elastic

Its substitution effect is positive

Its demand curve is positively sloped

What is deducted from GNP to find GDP:

Depreciation allowance

Net income received from abroad

Indirect as

Transfer payments

NAT II Management Science Economy MCQs With Answers