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

The shape of AR and MR under perfect competition is:

Vertical

U-shape

Horizontal to ox-axis

None of these

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

8 percent

10percent

15percent

20percent

When price falls supply:

Expands

Contracts

Remains zero

Becomes fixed

Which of the following will be TRUE if real income rose and the interest rate fell following an increase in government purchases?

IS curve must be vertical

LM curve must be vertical

Central Bank must have increased the money supply at the same time

Central Bank must have decreased the money supply at the same time

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

Increases

Remains constant

Diminshes

Negative

NAT II Management Science Economy MCQs With Answers