Question # 1

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

Inflation on prices:

Decrease

Remains constant

Increase

Become zero

The real exchange rate is defined as the:

Market exchange rate adjusted for prices

Market exchange rate adjusted for interest rates

Market exchange rate

Exchange rate determined by the government

Mairani Dam is being built in Balochistan Gomal Zam Dam in NWFP and Diamer Bhasha Dam in the region of:

Punjab

Northern Areas

NWFP

Sindh

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 production of gram in 2005-06, in thousand tons was:

450

500

527

750

NAT II Management Science Economy MCQs With Answers