Question # 1

In inflation prices:

Increase

Do not change

Decrease

Become zero

Who presented the quantity theory of money:

Marshall

Robbins

Taussig

Keynes

"Government collects zero revenue if the tax rate is 0% and if the tax rate is 100%." Which of the following best describes this statement?

Consumption curve

Supply curve

Laffer curve

Investment curve

Double counting in national income refers to:

Counting a product more than once

Counting a product at the final stage of output process

Counting both as product and as factor payment

Counting both as real goods and as money flow

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

Given the amount of gross fixed investment percentage of GDP during 2005-06.

14.2 percent

18.4 percent

25.0 percent

26.6 percent

NAT II Management Science Economy MCQs With Answers