Solved MCQS of Economics Set 1

Solved MCQS of Economics


The production of gram in 2005-06, in thousand tons was:
750
527
500
450

What is the interest rate effect that explains why the aggregate demand curve slopes downward?
It refers to the shifts in aggregate demand when interest rates change
It refers to the effect of changes in the price level on quantity of investment demanded which in turn affects interest rates
It refers to the effect of changes in the price level on interest rates which in turn affects the quantity of investment demanded

In 2005-06 the real GDP growth of USA was 3.5 percent, of China 9.9 percent, Japan 2.7 percent, India 8.0 percent and of Pakistan was:
4.6 percent
5.0 percent
1.6 percent
6.6 percent

Personal income includes:
Direct taxes
Undivided profit
Both 2nd and 3rd
Indirect taxes

In inflation prices:
Do not change
Become zero
Increase
Decrease

If total expenditure decrease with the rise in prices elasticity of demand will be:
Less than unity
Equal to zero
Greater than unity
Equal to unity

In 2005-06 the share of chemicals was 9.08 percent and the share of electricals was:
11.78 percent
16.3 percent
4.6 percent
8.2 percent

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 elasticity of demand of durable goods is
Equal to unity
Zero
Less than unity
More than unity

Marginal cost curve always intersects average cost curve at:
The central point
The maximum point
The minimum point
The vertical point

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