Question # 1

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

The elasticity of demand of durable goods is

More than unity

Equal to unity

Less than unity

Zero

In inflation prices:

Increase

Do not change

Decrease

Become zero

In 2005-06 the share of chemicals was 9.08 percent and the share of electricals was:

4.6 percent

8.2 percent

11.78 percent

16.3 percent

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

5Q

5

5 + (200/Q)

200

In 2005-06 the growth rate of Saudi Arabia was 6.5 percent, Kuwait 8.5 percent and Bangladesh 5.8 percent. What was the growth rate of Iran?

4.2 percent

3.1 percent

6.7 percent

5.9 percent

NAT II Management Science Economy MCQs With Answers