NAT II Management Science Economy MCQs With Answers

Question # 1

The share of agriculture in the national economy in 2005-06, was:

21.6percent

16.2percent

12.8percent`

13.4percent

Question # 2

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

Question # 3

Ushr implies on:

Agricultural product

Industrial product

Agricultural & industrial product

None of these

Question # 4

If money supply is fixed by the central bank then in interest rate money supply space, money supply curve will be:

Horizontal

Vertical

Negatively sloped

Positively sloped

Question # 5

Which of the following will be TRUE if real income rose and the interest rate fell following an increase in government purchases?

IS curve must be vertical

LM curve must be vertical

Central Bank must have increased the money supply at the same time

Central Bank must have decreased the money supply at the same time

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