Question # 1

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

Increases

Remains constant

Diminshes

Negative

Average revenue is equal to:

Price

Total revenue

Marginal revenue

Average cost

If we compare Gross Domestic Product (GDP) with Gross National

1. Product (GNP) then:

GNP = GDP - Net income from abroad

GNP = GDP + Net income from abroad

GNP = NNP - Net income from abroad

GNP = NNP + Net income from abroad

If money supply is fixed by the central bank then in interest rate money supply space, money supply curve will be:

Horizontal

Vertical

Negatively sloped

Positively sloped

An increase in supply is shown by:

Shifting the supply curve to the left

Shifting the supply curve to the right

Upward movement along the supply curve

Downward movement along the supply curve

If total expenditure decrease with the rise in prices elasticity of demand will be:

Equal to unity

Less than unity

Greater than unity

Equal to zero

NAT II Management Science Economy MCQs With Answers