A demand curve which takes the form of horizontal line parallel to quantity axis illustrates elasticity which is:
1.Zero
2.Infinite
3.Greater than one
4.Less than one
Posted Date:-2021-11-06 10:27:53
A situation where the firm is not in a position to recover its variable costs at the prevailing prices is known as:
1.Point of inflation
2.Equilibrium point
3.Optimum point
4.None of these
Posted Date:-2021-11-06 10:23:23
According to real business cycle theory an increase in taxes
1.Would significantly reduce labor supply, increase employment, and decrease output
2.A decline in employment but not in output
3.Would significantly reduce labor supply, decrease employment, and decrease output
4.No change in output and employment
Posted Date:-2021-11-06 10:31:17
According to the Keynesians,
1.An easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s
2.An easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s
3.There was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s
4.Budget deficits and trade deficits should not be a source of concern
Posted Date:-2021-11-06 11:50:16
According to the partisan theory,
1.Politicians are viewed as working only for their own welfare.
2.There are two parties with flexible goals
3.Moderates and liberals often switch political goals
4.Macroeconomic policy is not a key focus of most politicians
Posted Date:-2021-11-06 10:25:17
According to the real business cycle theory business cycles
1.Can be eliminated with appropriate monetary and fiscal policy
2.Are natural and efficient reactions to changes in productivity
3.Do not occur
4.Occur infrequently
Posted Date:-2021-11-06 12:00:59
Adam Smith advocated
1.Laissez Faire
2.Division of Labour
3.Both of these
4.None of these
Posted Date:-2021-11-06 10:27:00
Advocates of the public-choice view argue that elected officials
1.Will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies
2.Will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies
3.Will always respond to both inflation and unemployment with expansionary policies
4.None of the above
Posted Date:-2021-11-06 11:57:41
Advocates of the public-choice view argue that voting behaviour is influenced by the
1.Rate of inflation prior to an election.
2.Level of economic activity.
3.Favourite son syndrome.
4.Campaign issues
Posted Date:-2021-11-06 10:34:47
An exceptional demand curve is one that slopes
1.Upward to the left
2.Downward to the right
3.Horizontally
4.Upward to the right
Posted Date:-2021-11-06 10:36:29
Assume that the actual deficit is $150 billion with the economy well below potential output and that the level of economic activity rose to its potential level while tax revenues increased by $50 billion and transfer payments fell by $20 billion. Then, what is the structural deficit?
1.$180 billion
2.$120 billion
3.$220 billion
4.$80 billion
Posted Date:-2021-11-06 10:35:16
Automatic stabilizers drive changes in
1.The total deficit
2.The cyclical deficit
3.The structural deficit
4.Monetary policy
Posted Date:-2021-11-06 11:58:13
Consider a demand curve which takes the form of a straight line cutting both axes. Elasticity at the mid-point of the line would be:
1.Zero
2.One infinite
3.infinite
4.Can not be calculated
Posted Date:-2021-11-06 11:42:51
Deductive method
1.Moves from general to particular
2.Moves from general to particular
3.Is based on hypothesis
4.both a and b
Posted Date:-2021-11-06 10:32:09
Demand for a commodity is elastic when it has:
1.Only one use
2.Uses which can not be postponed
3.Many uses
4.Uses very essential for the consumer
Posted Date:-2021-11-06 11:51:46
Factor intensity as it is used in economics, is primarily s:
1.Relative concept
2.Absolute concept
3.Abstract concept
4.Empirical concept
Posted Date:-2021-11-06 10:22:58
Feudalistic economy is dominated by
1.Entrepreneur
2.Worker
3.Landlord
4.None of these
Posted Date:-2021-11-06 11:58:37
From the net tax function: T=t0+t1Y,where t0<0 and t1>0, it follows that, as income rises
1.average taxes falls and the surplus declines
2.average taxes rises and the deficit increases
3.average taxes falls and the deficit declines
4.average taxes and the deficit do not change
Posted Date:-2021-11-06 10:35:39
Harrod-Domar model was formed the basis of which plan
1.First plan
2.Third plan
3.Second plan
4.None of the above
Posted Date:-2021-11-06 11:56:21
If external debt of country rises faster than its interest obligations, it is a case of:
1.Dept trap
2.Liquidity trap
3.Poverty trap
4.Export led growth
Posted Date:-2021-11-06 10:32:31
If the percentage increase in quantity of a commodity demanded is its price, the coefficient of price elasticity of demand is:
1.Greater than 1
2.Equal to 1
3.Less than 1
4.Zero
Posted Date:-2021-11-06 11:53:09
If the quantity of a commodity demanded remains unchanged as its price changes, the coefficient of price elasticity of demand is
1.Greater than 1
2.Equal to 1
3.Less than 1
4.Zero
Posted Date:-2021-11-06 10:28:19
If the tax function is T= t0+t1y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP oer unit change into t0 (ΔY/Δ t0) will be
1.-1
2.+1
3.-1.5
4.-2
Posted Date:-2021-11-06 12:01:22
In any efficiency wage model it must be true that
1.The marginal benefit of increased efficiency is equal to the marginal cost of higher wages
2.Nominal wages are inflexible
3.Disequilibrium in the labor market exists
4.None of the above
Posted Date:-2021-11-06 10:29:40
In case of Giffen goods, demand curve will slope:
1.Vertical
2.Horizontal
3.Upward
4.Downward
Posted Date:-2021-11-06 11:43:15
In real business cycle models and new classical models
1.Monetary factors are responsible for fluctuations in output and employment
2.Changes in unemployment are involuntary
3.Markets always clear
4.None of the above
Posted Date:-2021-11-06 10:29:14
In the new Keynesian models,
1.Imperfect competition comes is the result of optimizing behavior by individuals
2.Perfect competition is assumed with respect to the product market
3.A natural monopoly is presumed for the product market
4.Both a and c
Posted Date:-2021-11-06 12:00:06
In the real business cycle model, business cycles are
1.Efficient and do not represent lost output
2.Driven by technology shocks
3.Occur when markets clear
4.All of the above
Posted Date:-2021-11-06 11:43:41
Indian exports were increased during 2001-2002 and it went upto the level of:
1.39.8 billion dollars
2.28.2 billion dollars
3.44.0 billion dollars
4.45.6 billion dollars
Posted Date:-2021-11-06 10:32:59
Joint profits are maximized in the model cartel, which is model of:
1.Duopsony
2.Duopoly
3.Oligopoly
4.Oligopony
Posted Date:-2021-11-06 11:56:43
Marginal utility curve of a given consumer is also his:
1.Indifference curve
2.Total utility curve
3.Demand curve
4.Supply curve
Posted Date:-2021-11-06 11:59:11
Monopsony is a form of market organization in which there is a:
1.Single buyer of an input
2.Single seller of an output
3.Single buyer of an output
4.Single seller of an input
Posted Date:-2021-11-06 11:48:09
New Keynesian economics differs from real business cycle economics in that
1.Markets are perfectly competitive in new Keynesian models
2.Business cycles are fluctuations in the natural rate of unemployment in new Keynesian models
3.Wages and prices are perfectly flexible
4.None of these
Posted Date:-2021-11-06 11:44:10
New Keynesian economists/p>
1.Believe that the deviations of output below potential output during recessions are socially costly
2.Presume that much unemployment is involuntary
3.Attempt to improve the microeconomic foundations of the traditional Keynesian models not challenge their major premises
4.All of the above
Posted Date:-2021-11-06 12:00:32
New Keynesian theories of efficiency wages imply
1.Voluntary unemployment
2.Real wage rigidity
3.Changes in unemployment represent changes in the natural rate of unemployment
4.None of the above
Posted Date:-2021-11-06 10:31:46
Protectionism in the international trade stands for:
1.Semi-restricted Trade
2.Free trade policy
3.Restricted Trade policy
4.All of the above
Posted Date:-2021-11-06 11:47:42
Real business cycle and new Keynesian models disagree upon
1.Whether people form their expectations rationally
2.Whether changes in unemployment are voluntary or involuntary
3.Whether individuals engage in optimizing behavior at all times
4.Whether changes in the money supply affect output in the long-run
Posted Date:-2021-11-06 11:55:00
Real business cycle proponents argue that
1.Recessions are caused by movements of output away from the natural rate of output
2.Prices and wages are sticky
3.Macroeconomics should be based on the same assumptions as microeconomics
4.Monetary policy is important in determining recessions
Posted Date:-2021-11-06 10:28:47
Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be
1.1
2.-2.
3.2.5
4.2
Posted Date:-2021-11-06 10:24:24
Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by
1.-20 units
2.10 units
3.20 units
4.40 units
Posted Date:-2021-11-06 10:34:19
The book 'Asian Drama' was written by
1.A.C Pigou
2.D.Ricardov
3.Gunnar Myrdal
4.Lionel Robbins
Posted Date:-2021-11-06 10:36:04
The cyclical deficit is that portion of the deficit
1.That results form the economy being below the natural rate of output
2.That would exist even if the economy were at its natural rate of output
3.Is a function of the level of automatic stabilizers
4.both a & c
Posted Date:-2021-11-06 10:26:34
The economist who said that international trade was based upon the concept of absolute advantage was:
1.David Ricardo
2.Adam Smith
3.J.S.Mill
4.Bertil Ohlin
Posted Date:-2021-11-06 11:55:51
The elasticity of demand for a product will be higher:
1.The more available are substitutes for that product
2.The more its buyers demand loyalty
3.The more the product is considered a necessity by its buyers
4.All of the above
Posted Date:-2021-11-06 11:52:42
The fundamental cause for the collapse of the Bretton woods system was:
1.The liquidity problem
2.The adjustment problem
3.The confidence problem
4.None of the above
Posted Date:-2021-11-06 11:49:23
The Historical school was based on
1.Deductive method
2.Inductive method
3.Both of above
4.None of these
Posted Date:-2021-11-06 11:51:17
The imposition of an import tariff by a nation will increase the nation's welfare:
1.Never
2.Often
3.Sometimes
4.Always
Posted Date:-2021-11-06 10:22:34
The interrelation between innovations and investment opportunity was first pointed out by:
1.Schumpeter
2.Samuelson
3.T. R. Hicks
4.Torgenson
Posted Date:-2021-11-06 10:33:23
The proportionality between the velocity of price movement and the inflationary gap is:
1.Indirect and irregular
2.Direct and linear
3.Irregular and direct
4.Indirect and non-linear
Posted Date:-2021-11-06 11:49:01
The real business cycle theory and the new classical theory agree that
1.Business cycles are driven by changes in Aggregate demand
2.Expectations are formed rationally
3.Imperfect information plays a big role in business cycles
4.None of the above
Posted Date:-2021-11-06 10:30:42
The real business cycle theory is most closely related to
1.Keynesian theory
2.Monetarist theory
3.The classical theory
4.The new Keynesian theory
Posted Date:-2021-11-06 11:59:36
The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget
1.Should require actual deficits be equal to zero on average
2.Should go into a surplus at appropriate points in the business cycle.
3.Cannot have a structural deficit component
4.Both a & b
Posted Date:-2021-11-06 10:24:53
The traffic which maximizes a country's economic welfare is called
1.Discriminatory traffic
2.Protective traffic
3.Optimum traffic
4.Non-Discriminatory traffic
Posted Date:-2021-11-06 10:23:50
The utility may be defined as:
1.The desire for a commodity
2.The usefulness of a commodity
3.The necessity of a commodity
4.The power of a commodity to satisfy wants
Posted Date:-2021-11-06 11:52:13
When an individual's income falls(while everything else remains the same), his demand for an inferior good:
1.Increases
2.Decrease
3.Remains unchanged
4.We cannot say without additional information
Posted Date:-2021-11-06 10:27:31
When automatic fiscal stabilizers are in place, a shock that causes a fall in the kevel of economic activity automatically
1.Results in a decline in the federal budget deficit that lessens the fall in income
2.Results in a rise in the federal deficit that lessens the fall in income
3.Requires the federal government to balance the budget
4.Will lead to a permanent increase in the budget deficit
Posted Date:-2021-11-06 11:49:51
When average product is falling, it is
1.When average product is falling, it is
2.Not measurable in this case
3.Greater than the marginal product
4.Greater than the marginal product
Posted Date:-2021-11-06 11:47:17
When the demand curve is a rectangular hyperbola, it represents:
1.Perfectly elastic demand
2.Unitary elastic demand
3.Perfectly inelastic demand
4.Relatively elastic demand
Posted Date:-2021-11-06 10:36:56
Which of the following are the most frequently utilized tools of fiscal policy in the United States?
1.Indirect business taxes
2.Corporate income taxes
3.Inheritance taxes
4.Personal income taxes
Posted Date:-2021-11-06 10:25:41
Which of the following cannot be used to justify efficiency wages
1.Sticky price(menu cost) models
2.Turnover costs
3.Worker shirking
4.Worker morale
Posted Date:-2021-11-06 11:45:53
Which of the following hypotheses about voter behaviour have been advanced in public-choice literature?
1.Voters are myopic
2.Unemployment is more likely to result in vote loss than is higher inflation
3.Deficit bias of the budget process
4.All of the above
Posted Date:-2021-11-06 11:50:47
Which of the following is a problem connected with general equilibrium analysis?
1.Uniqueness problem
2.Existence problem
3.stability problem
4.All of the above
Posted Date:-2021-11-06 11:57:09
Which of the following is the least liquid asset?
1.Machines
2.Money
3.Shares
4.Bonds
Posted Date:-2021-11-06 11:55:26
Which of the following models view changes in real supply-side factors as determinants of short-run fluctuations in output and employment?
1.New classical models
2.Political business cycle models
3.Keynesian models
4.Real business cycle models
Posted Date:-2021-11-06 11:46:20
Which of the following statements are correct? In (the)
1.Keynesian model, unemployment is voluntary.
2.Real business cycle model, all unemployment is voluntary
3.New classical models, there is voluntary unemployment
4.Both b&c
Posted Date:-2021-11-06 11:53:45
Which of the following statements are correct? In the insider/outsider model there is
1.Unemployment due to the real wage being set above the market clearing level
2.Cyclical unemployment in response to changes in aggregate demand
3.Structural unemployment in response to hysteresis
4.All of the above
Posted Date:-2021-11-06 11:46:49
Which of the following statements are(is) correct?
1.Expansionary monetary policy and expansionary fiscal that leads to budget deficits create low interest rates
2.High interest rates in the first half of the 1980s resulted from falls in the budget deficit under the Reagan administration
3.The best monetary-fiscal policy mix to keep interest rates low would be to raise taxes and raise the money supply
4.The answer depends upon the school of thought used to evaluate the effects of deficit policies
Posted Date:-2021-11-06 10:26:09
Who has suggested the utilization of “disguised unemployment†as a source of savings potential in underdeveloped countries?
1.W.A Lewis
2.Ragnar Nurkse
3.Gunnar Myrdal
4.K.K Kurihara
Posted Date:-2021-11-06 10:33:49
With respect to efficiency wage models the efficiency of workers depends
1.Positively on the money wage they are paid
2.Positively on the real wage paid
3.Inversely on the age of the workers
4.Positively on the unemployment rate
Posted Date:-2021-11-06 11:54:35