Question # 1

If pen and ink are complements, then an increase in the price of pen will cause:

An increase in the price of ink

Less ink to the demanded at each price

A decrease in the demand for pen

A rightward shift in the demand curve for ink

For a study of the long term growth of the economy, we use:

Real GNP

Nominal GNP

Personal income

Disposable personal income

According to law of diminishing marginal utility, the marginal utility:

Increases

Remains constant

Diminshes

Negative

A tax on the accounting profits of corporations is known as:

Sales tax

Excise tax

Corporate income tax

Personal income tax

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

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