A) AR-MR/ AR
B) AR/ AR-MR
C) MR/ AR-MR
D) AR-MR/ MR
Ans) A
(2) A firm will be of optimum size when -
A) Marginal cost is at a minimum.
B) Average cost is at a minimum.
C) Marginal cost is equal to marginal revenue.
D) The firm maximises its output.
Ans) B
(3) The time preference theory of interest was developed by -
A) Wicksell
B) Bohm-Bawerk
C) Irving Fisher
D) J.M. Keynes
Ans) C
(4) Which of the following statement(s) is/are true for Arrow-Debreu model of general equilibrium ?
A) Goods are identified where they are to be delivered.
B) Goods are identified when they are to be delivered.
C) Both A and B
D) None of these
Ans) C
(5) If Sales Tax on a commodity is raised, but the revenue earned through its sale decreases sharply, which one of the following statements about the nature of this commodity would be correct ?
A) Price elasticity of demand for it is unity.
B) It must be an essential goods.
C) Price elasticity of demand for it is high.
D) Price elasticity of demand for it is low.
Ans) C
(6) The below diagrams show the risk aversion of two individuals with the help of indifference curves. Choose the correct answer from the following by studying the diagrams.
B) 'B' is highly risk averse.
C) A's and B's risk aversion is identical.
D) Degree of risk aversion is Indeterminate.
Ans) A
(7) One of the essential conditions of monopolistic competition is -
A) Homogeneous product
B) Product differentiation
C) Price discrimination
D) Many buyers but one seller
Ans) B
(8) Logical extension of Cournot model is -
A) Bertrand model
B) Stackleberge model
C) Sweezy model
D) None of the above
Ans) B
(9) Minimum support prices for agricultural commodities are fixed are fixed after taking into account the recommendations of which of the following bodies ?
A) Ministry of Agriculture
B) Ministry of Food Processing
C) NITI AAYOG
D) Commission for Agricultural Costs & Prices (CACP)
Ans) D
(10) Diversification of agriculture implies -
A) Increase in the cropping intensity.
B) Shifting labour from agriculture to other areas.
C) Promoting cottage and village industries.
D) Changing the cropping pattern in favour of horticulture and floriculture crops.
Ans) D
(11) The Agricultural Census is done at which one of the following intervals ?
A) Every year
B) Once in 3 years
C) Once in 5 years
D) Once in 10 years
Ans) C
(12) The share of food expenditure in total expenditure for Urban consumer and Rural consumer in India was 56% and 64% respectively in (1987-88) and which changed to 41% and 54% in (2009-10). This is appropriately explained by which of the following ?
A) Decline in food production.
B) Decline in purchasing power of consumers.
C) Operation of Engel's Law.
D) Operation of law of diminishing marginal utility.
Ans) C
(13) For demand function P=15-2X-X², what is consumer's surplus at X=2 ?
A) 6
B) 28/3
C) 7/4
D) 11/3
Ans) B
(14) Which of the following is true for an optimum solution of a linear programming problem ?
A) Number of non-zero valued slack variables is equal to the number of constraints.
B) Number of non-zero valued variables (including slack) is exactly equal to the number of constraints.
C) Number of non-zero valued slack variables is equal to the number of binding constraints.
D) Number of non-zero valued variables is equal to the number of non-binding constraints.
Ans) B
(15) If the targets for an economy are fixed in terms of final demand vector F, then the compatible levels of output vector X, in terms of input-output analysis will be determined according to which of the following ?
A) A + F = X
B) AX - F = X
C) (I - A)-¹ F = X
D) (I - A) F = X
Ans) C
(16) In a two-variable regression, Y is dependent variable and X is independent variable. The correlation coefficient between Y and X is 0.8. For this, which of the following is correct ?
A) 8% variations in Y are explained by X.
B) 64% variations in Y are explained by X.
C) 0.8% variations in Y are explained by X.
D) None of the above.
Ans) B
(17) Generalized Least Squares Method is suitable for estimation of parameters in a General Linear Model for dealing with problem of
i) Measurement Errors ii) Autocorrelated Disturbances iii) Multicollinearity
iv) Heteroscedasticity
Select the correct answer from codes given below :
Codes :
A) i, ii, iii, iv
B) i, iii, iv
C) ii, iv
D) i, iii
Ans) C
(18) Match the following and select the correct answer from codes given below :
List-I
a) Goldfield-Quant test b) Durbin-Watson test c) Farrar-Glauber test d) Wald-Bartlett method
List-II
i) Errors in variables
ii) Heteroscedasticity iii) Auto-correlation
iv) Multicollinearity
Codes :
a b c d
A) iv ii iii i
B) iii i ii iv
C) i iii iv ii
D) ii iii iv i
Ans) D
(19) In the standard adjoining diagram, the measure of consumer surplus is -
B) OB
C) AO
D) AB
Ans) D
(20) A cartel aims at maximising -
A) Individual profits
B) Industry profits
C) Share of output of members
D) Goodwill of the members
Ans) B
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