Question # 1

To find the profit maximizing level of output, a firm finds the output level where:

Price equals marginal cost

Marginal revenue and average total cost

Price equals marginal revenue

None of the given options

Income elasticity show the relationship between:

Income and demand

Income and consumption

Income and price

Income and saving

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

The elasticity of demand of durable goods is

More than unity

Equal to unity

Less than unity

Zero

The Kachhi Canal water project shall be completed in:

September 2008

June 2008

April 2009

December 2008

In 2005-06, the percentage of total investment to GDP was:

8 percent

10percent

15percent

20percent

NAT II Management Science Economy MCQs With Answers