Question # 1

The long run aggregate supply curve will shift to the right if:

The price level increases.

Factors of production (such as labor and capital) increase

Expenditures (such as consumption and net exports) increase.

The prices of inputs used to produce goods and services (such as wages and the price of oil)descreases

Give the production of sugarcane in Pakistan in 2005-06?

22 millions tons

33 million tons

44 million tons

55 million tons

Under the kinked demand curve model, an increase in marginal cost will lead to:

An increase in output level and a decrease in price.

A decrease in output level and an increase in price.

A decrease in output level and no change in price.

Neither a change in output level our a change in price.

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 elasticity of demand of durable goods is:

Zero

More than unity

Less than unity

Equal to unity

If pen and ink are complements, then an increase in the price of pen will cause:

An increase in the price of ink

Less ink to the demanded at each price

A decrease in the demand for pen

A rightward shift in the demand curve for ink

NAT II Management Science Economy MCQs With Answers