Question # 1

The total cost (TC) function is given as: TC = 200 + 5Q. What is the fixed cost?

5Q

5

5 + (200/Q)

200

The per capita income was $742 in 2004-05 but in 2005-06, rose to:

$ 795

$ 847

$ 880

$900

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

Name the water project to be completed in April 2009:

Gomal Zam Dam

Rainee Canal

Kachhi Canal

Mirani Dam

What is the interest rate effect that explains why the aggregate demand curve slopes downward?

It refers to the effect of changes in the price level on quantity of investment demanded which in turn affects interest rates

It refers to the effect of interest rates on borrowing which in turn affects consumption spending.

It refers to the effect of changes in the price level on interest rates which in turn affects the quantity of investment demanded

It refers to the shifts in aggregate demand when interest rates change

When national income is increases:

Standard of living increases

Standard of living decreases

Remains same

Bad thing

NAT II Management Science Economy MCQs With Answers