Question # 1

The elasticity of demand of durable goods is

More than unity

Equal to unity

Less than unity

Zero

The interest rate parity is the basic identity that relates which of the following?

Interest rates and exchange rates

Interest rates and inflation rate

Exchange rates and inflation rate

Discount rate and inflation rate

As more of a good is consumed, then total utility typically:

Increases at a decreasing rate.

Decreases as long as marginal utility is negative

Decreases as long as marginal utility is positive

Is negative as long as marginal utility is decreasing.

Inflation on prices:

Decrease

Remains constant

Increase

Become zero

The Kachhi Canal water project shall be completed in:

September 2008

June 2008

April 2009

December 2008

Which ASEAN nation had the highest growth rate of 7.5 percent in 2005-06?

Indonesia

Malaysia

Vietnam

Thailand

NAT II Management Science Economy MCQs With Answers