Question # 1

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

As more of a good is consumed, then total utility typically:

Increases at a decreasing rate.

Decreases as long as marginal utility is negative

Decreases as long as marginal utility is positive

Is negative as long as marginal utility is decreasing.

Which of the following event will lead towards cost-push inflation and therefore stagflation?

An increase in taxes on individuals

A decrease in real interest rates

A union settlement that increases wage levels

An increase in government purchases

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

Increases

Remains constant

Diminshes

Negative

What was the difficulty in the barter System:

Excess of goods

Difference language

Lack of co-incidence

Difference in profession

Reward the labour is:

Interest

Wages

Profit

Rent

NAT II Management Science Economy MCQs With Answers