Question # 1

Inflation on prices:

Decrease

Remains constant

Increase

Become zero

Double counting in national income refers to:

Counting a product more than once

Counting a product at the final stage of output process

Counting both as product and as factor payment

Counting both as real goods and as money flow

What was the production of wheat in million tones during 2005-06?

16.6

21.7

26.2

30.8

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

The methods of measuring elasticity of supply are:

Three

Two

Four

Five

To find the profit maximizing level of output, a firm finds the output level where:

Price equals marginal cost

Marginal revenue and average total cost

Price equals marginal revenue

None of the given options

NAT II Management Science Economy MCQs With Answers