Question # 1

Which sector contributed to 22 percent to GDP in Pakistan in 2005-06?

Services

Transport

Mining

Agriculture

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

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

In inflation prices:

Increase

Do not change

Decrease

Become zero

Who is responsible for profit and loss in the business:

Capitalist

Entrepreneur

Labour

Middleman

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

NAT II Management Science Economy MCQs With Answers