Question # 1

Welfare economics is the branch of economics which deals with:

Positive issues

Normative issues

Micro issues

Macro issues

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

When price falls supply:

Expands

Contracts

Remains zero

Becomes fixed

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

450

500

527

750

"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

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

NAT II Management Science Economy MCQs With Answers