(1) Which is called Gossen's second law ?
A) Law of Equi-marginal utility
B) Law of diminishing marginal utility
C) Revealed Preference Theory
D) Indifference curve approach
Ans) A
(2) When a consumer is in equilibrium, MRSxy is 2.5. If the price of commodity Y is 16, then what will be the price of commodity X ?
A) 40
B) 6.4
C) 23.2
D) 24
Ans) A
(3) Who explained importance of time element in price determination, for the first time ?
A) Chamberlin
B) Stingler
C) Joan Robinson
D) Marshall
Ans) D
(4) Law of diminishing returns begins to operate when :
A) Total product begins to rise.
B) Total product begins to fall.
C) Marginal product begins to rise.
D) Marginal product begins to fall.
Ans) D
(5) Public goods are characterized by -
1) Collective consumption 2) Divisibility
3) Non-exclusion 4) Rival consumption
Select the correct answer from the code given below :
Codes :
A) 1 & 2 are correct.
B) 1 & 3 are correct.
C) 1 & 4 are correct.
D) 2 & 4 are correct.
Ans) B
(6) Among the following what causes market failure ?
1) Externality 2) Asymmetric of information
3) Perfect competition
Choose the correct answer from the code given below :
Codes :
A) 1, 2 & 3 are correct.
B) Only 1 is correct.
C) 1 & 2 are correct.
D) 2 & 3 are correct.
Ans) C
(7) Assuming wage-price flexibility, the classical economists asserted that a decline in money wages and price would lead to -
A) Unemployment
B) Deflation
C) High level of employment and output
D) Unemployment and decline in output
Ans) C
(8) The Classical theory of interest postulates that both savings and investments are a function of -
A) The level of National incom
B) The level of employment and output
C) Monetary and fiscal policy
D) Rate of interest
Ans) D
(9) Who among the following said, "Inflation is everywhere and always a monetary phenomenon" ?
A) James Tobin
B) John M Keynes
C) Milton Friedman
D) Anna J Shuwartz
Ans) C
(10) Accelerator is most closely related to -
A) Interest rate
B) Inventories
C) Idle capacity
D) Induced investment
Ans) D
(11) Match List-I and List-II and select the correct answer from the codes given below :
List-I (Concept)
a) Liquidity trap b) Demonstration effect
c) Permanent income hypothesis d) Wealth effect
List-II (Economist)
1) Milton Friedman 2) A.C. Pigou
3) J. Duesenberry 4) J.M. Keynes
Codes :
a b c d
A) 4 3 1 2
B) 1 2 4 3
C) 4 2 1 3
D) 1 3 4 2
Ans) A
(12) Which of the following statement is true ?
A) Sporadic dumping is selling of goods at a low price in the foreign market to get rid of the inventory stocks.
B) Predatory dumping is destroying of competitors even at a loss initially and then, after eliminating of competitors, selling product at a high price.
C) Persistent dumping is selling a product at a lower price in foreign markets due to differences in elasticity of demand at home and in the foreign market.
D) All the above.
Ans) D
(13) According the Comparative Advantage Theory, International Trade will not take place if -
A) One country is efficient in the production of both the products.
B) One country is inefficient in the production of both the products.
C) Opportunity costs of the two products are same in both the countries.
D) None of the above.
Ans) C
(14) Imposition of tariff will lead to -
A) Deterioration in terms of trade
B) Improvement in terms of trade
C) No effect on terms of trade
D) None of the above
Ans) B
(15) Under a freely exchange rate system, a deficit in a Nation's Balance of Payments account is automatically corrected by -
A) A depreciation of it's currency
B) An appreciation of it's currency
C) Domestic inflation
D) Deflation and rise in National income
Ans) A
(16) Maastricht treaty led to the creation of which one of the following ?
A) European parliament
B) Euro
C) European court of justice
D) European Union
Ans) D
(17) The Stolpher-Samuelson theorem postulates that the imposition of a tariff by a nation causes the real income of the nation's -
A) Abundant factor to rise
B) Scarce factor to rise
C) Scarce factor to fall
D) Both A) & B) are possible
Ans) B
(18) What is perspective planning ?
A) Overall appraisal of planning.
B) Review of planning in different fields
C) Taking up past experience and reviewing the future in that light.
D) Planning for future so as to meet the long-term requirement of development in the country.
Ans) D
(19) Who formulated the 'People's plan' for India in 1944 ?
A) J.L. Nehru
B) M.N. Roy
C) Subhash Chandra Bose
D) Mahatma Gandhi
Ans) B
(20) 'Trickle down' strategy implies -
A) Growing GNP taking care of poverty.
B) Reduction in the income of the upper class by deliberate redistribution.
C) Direct achievement of better nourishment, health, education, etc. instead of growth of GNP first.
D) To target a particular sector of economy for betterment.
Ans) A
0 Comments